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Payroll Deductions

Use this calculator to help you determine the impact of changing your payroll deductions. You can enter your current payroll information and deductions, and then compare them to your proposed deductions. Try changing your withholdings, filing status or retirement savings and let the payroll deduction calculator show you the impact on your take home pay. This calculator has been updated to use the new withholding schedules for 2010.

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Definitions

Pay period
This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year), and Annually (one paycheck per year).

Gross pay
This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.

Filing status
This is your income tax filing status. The choices are "Single" and "Married". Choose "Married" if you are married or file as "head of household". Choose "Single" if you file your taxes as a single person or if you are married but file separately.

Number of allowances
When your Federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2010, each allowance you claim is equal to $3,650 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from 0 to 99 allowances.

401(k)/403(b) plan withholding
This is the percent of your gross income you put into a taxable deferred retirement account such as a 401(k) or 403(b). While increasing your retirement account savings does lower your take home pay, it also lowers your Federal income tax withholdings. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your 401(k) or 403(b) plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2010 there has been no change to the maximum contribution to a 401(k) or 403(b) which is $16,500 per year for individuals under 50 and $22,000 for individuals 50 or older.

State and local taxes
This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,650 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.

Post-tax deductions
Enter any payroll deductions made by your employer that are made with after tax income.

Post-tax reimbursements
Enter any reimbursements made by your employer that are after tax.

FICA OASDI
FICA Old Age Survivors and Disability Insurance is calculated as your gross earnings times 6.2%. Please note that this calculator does not make any assumptions as to the total FICA OASDI paid for the current year. For 2010, incomes over $106,800 that have already had the maximum FICA OASDI amount of $6,621.60 withheld will not have additional FICA OASDI withholdings.

FICA Medicare
FICA Medicare is calculated as the gross earnings times 1.45%. Unlike FICA OASDI, there is no annual limit to FICA Medicare deductions.

Federal tax withholding calculations
Federal income tax withholdings were calculated by:

  1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtracting the value of allowances allowed (for 2010, this is $3,650 multiplied by withholding allowances claimed).
  3. Determining your annual tax by using the tables below (single and married rates, respectively).
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.

Single Withholding Rates*

Annual taxable income between these amounts

Annual withholding

Withhold additional % of income over this amount

$0.00

$6,050.00

$0.00

 

$6,050.00

$10,425.00

$0.000

plus 10% of income over $6,050.00

$10,425.00

$36,050.00

$437.50

plus 15% of income over $10,425.00

$36,050.00

$67,700.00

$4,281.25

plus 25% of income over $36,050.00

$67,700.00

$84,450.00

$12,193.75

plus 27% of income over $67,700.00

$84,450.00

$87,700.00

$16,716.25

plus 30% of income over $84,450.00

$87,700.00

$173,900.00

$17,691.25

plus 28% of income over $87,700.00

$173,900.00

$375,700.00

$41,827.25

plus 33% of income over $173,900.00

$375,700.00

(no limit)

$108,421.25

plus 35% of income over $375,700.00

Married Withholding Rates*

Annual taxable income between these amounts

Annual withholding

Withhold additional % of income over this amount

$0.00

$13,750.00

$0.00

 

$13,750.00

$24,500.00

$0.00

plus 10% of income over $13,750.00

$24,500.00

$75,750.00

$1,075.00

plus 15% of income over $24,500.00

$75,750.00

$94,050.00

$8,762.50

plus 25% of income over $75,750.00

$94,050.00

$124,050.00

$13,337.50

plus 27% of income over $94,050.00

$124,050.00

$145,050.00

$21,437.50

plus 25% of income over $124,050.00

$145,050.00

$217,000.00

$26,687.50

plus 28% of income over $145,050.00

$217,000.00

$381,400.00

$46,883.50

plus 33% of income over $217,000.00

$381,400.00

(no limit)

101,085.50

plus 35% of income over $381,400.00

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.