NUM8ERS Tutoring Center Dubai logo – you can count on us
Book Now
Sign In

💰 Employer Paycheck Calculator 2026

Calculate gross pay, tax withholdings, deductions, and net pay for employees

👤 Employee & Pay Information

📋 Tax & Filing Information

➖ Pre-Tax Deductions

⚠️ Disclaimer: This calculator provides estimates only. Actual withholdings depend on W-4 elections, state/local taxes, and employer policies. Consult a tax professional for accurate payroll calculations.
Net Pay (Take Home)
$0.00
Gross Pay$0.00
Regular Pay$0.00
Overtime Pay$0.00
Pre-Tax Deductions-$0.00
Taxable Income$0.00
Total Taxes-$0.00
Federal Income Tax-$0.00
State Income Tax-$0.00
Social Security (6.2%)-$0.00
Medicare (1.45%)-$0.00

📊 Pay Period Summary

Pay PeriodBi-Weekly
Annual Gross$0
Annual Net (Est.)$0
Effective Tax Rate0%
401(k) This Period$0

🏢 Employer Costs

Employer SS (6.2%)$0.00
Employer Medicare (1.45%)$0.00
FUTA (0.6% first $7k)$0.00
Total Employer Cost$0.00

Understanding Payroll Taxes

🏛️ Federal Income Tax

Calculated using IRS tax brackets based on filing status and income. Withholding is estimated from your W-4 allowances. 2026 brackets apply progressive rates from 10% to 37%.

💳 FICA Taxes

Social Security: 6.2% on wages up to $168,600 (2026). Medicare: 1.45% on all wages, plus 0.9% additional on wages over $200k. Employer matches both.

🏠 State Taxes

Varies by state. Some have no income tax (TX, FL, WA, NV, TN, WY, SD, AK, NH). Others range from ~3% to 13%. Check your state's specific rates and brackets.

📉 Pre-Tax Deductions

401(k), health insurance, HSA/FSA reduce taxable income, lowering your tax burden. Max 401(k) for 2026: $23,000 ($30,500 if 50+).

Frequently Asked Questions

How do I calculate an employee's paycheck?
Formula: Gross Pay - Pre-Tax Deductions = Taxable Income. Then: Taxable Income - Taxes (Federal, State, FICA) = Net Pay. This calculator automates all calculations based on your inputs.
What is FICA tax and how much is it?
FICA = Social Security + Medicare. Employees pay 6.2% SS (up to wage base) + 1.45% Medicare = 7.65% total. Employers match this amount, so total FICA is 15.3% of wages.
What is the difference between gross and net pay?
Gross pay is total earnings before any deductions. Net pay (take-home) is what remains after taxes and deductions. Net = Gross - Taxes - Deductions.
How do I calculate federal tax withholding?
Based on IRS Publication 15-T using filing status, pay frequency, and W-4 allowances. Use IRS withholding tables or this calculator for estimates. Actual withholding follows IRS percentage method.
What are pre-tax vs post-tax deductions?
Pre-tax (401k, health insurance, HSA) reduces taxable income, lowering taxes. Post-tax (Roth 401k, life insurance, garnishments) comes from after-tax income. Pre-tax saves more money.
How much should I withhold for 401(k)?
Common recommendation: 10-15% of gross pay. At minimum, contribute enough to get your employer's full match (free money!). 2026 limit: $23,000 ($30,500 if age 50+).
Which states have no income tax?
Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire (dividends only), South Dakota, Tennessee, Texas, Washington, Wyoming. This increases take-home pay significantly.
What is the employer's share of payroll taxes?
Employers pay: 6.2% Social Security (matching employee), 1.45% Medicare (matching), FUTA 0.6% on first $7,000, plus state unemployment (SUTA varies). Total ~8-10% above salary.
How does overtime affect paycheck calculations?
Overtime is typically 1.5x regular rate (time and a half). Add OT pay to regular pay for gross pay. All taxes apply to total gross. California requires 2x after 12 hours.
What is the Social Security wage base for 2026?
The 2026 SS wage base is $168,600. The 6.2% tax only applies to wages up to this amount. Wages above aren't subject to SS tax (but Medicare has no limit).
How do I handle bi-weekly vs semi-monthly pay?
Bi-weekly: 26 pay periods/year (every 2 weeks). Semi-monthly: 24 pay periods/year (1st and 15th). This affects per-period calculations. Annual amounts are the same.
What is an effective tax rate?
Effective rate = Total Taxes ÷ Gross Income. Unlike marginal rate (highest bracket), effective rate shows your actual overall tax burden. It's always lower than marginal rate due to progressive brackets.
How do W-4 allowances affect withholding?
More allowances = less tax withheld per paycheck. Each allowance reduces taxable income for withholding purposes. Note: 2020+ W-4 uses different method without traditional allowances.
Can I use this for independent contractors?
No. Contractors (1099) pay self-employment tax (15.3% FICA) and no employer withholding. They're responsible for quarterly estimated taxes. This calculator is for W-2 employees only.
What deductions are required by law?
Required: Federal income tax, state/local income tax (where applicable), Social Security, Medicare. Optional: 401k, health insurance, HSA/FSA, life insurance, etc.
How often should employees be paid?
State laws vary. Most common: Bi-weekly (26x/year) or Semi-monthly (24x/year). Some states require weekly for certain workers. Check your state's pay frequency laws.
How accurate is this paycheck calculator?
Provides estimates using 2026 tax rates. Actual amounts depend on complete W-4 info, state/local taxes, and employer policies. Always verify with payroll software or accountant.