1. What is this Payroll Calculator?

This calculator helps determine the net pay for a $120,000 salary in Massachusetts after accounting for federal tax, state tax, and FICA contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Federal\ Tax \) — Federal income tax amount
• \( MA\ State\ Tax \) — Massachusetts state income tax amount
• \( FICA \) — Social Security and Medicare taxes

Explanation: The calculator subtracts all tax withholdings from the gross salary to determine the net pay.

3. Importance of Payroll Calculation

Details: Accurate payroll calculation ensures proper tax withholding and helps employees understand their take-home pay.

4. Using the Calculator

Tips: Enter the federal tax, Massachusetts state tax, and FICA amounts in dollars. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes.

Q2: How are tax amounts determined?
A: Tax amounts depend on filing status, allowances, and other factors. Consult IRS and MA DOR withholding tables.

Q3: Is Massachusetts state tax flat rate?
A: Massachusetts has a flat 5% income tax rate, but other factors may affect withholding.

Q4: Are there other deductions not included?
A: This calculator doesn't account for retirement contributions, health insurance, or other voluntary deductions.

Q5: Can I use this for other salary amounts?
A: This calculator is specifically designed for $120,000 salary in Massachusetts.