1. What is Net Pay Calculation?

The net pay calculation determines your take-home pay after deducting federal tax, state tax, and FICA contributions from your gross salary of $120,000 in Massachusetts.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

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

Explanation: The equation subtracts all mandatory deductions from the gross salary to determine the actual take-home pay.

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and verifying paycheck accuracy for a $120,000 salary in Massachusetts.

4. Using the Calculator

Tips: Enter your 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. For $120,000 salary, this would typically be $9,180 unless you've reached the Social Security wage base.

Q2: How is Massachusetts state tax calculated?
A: MA has a flat 5% income tax rate, but deductions and exemptions may affect your actual state tax amount.

Q3: Why is my federal tax different from tax tables?
A: Federal tax depends on filing status, deductions, credits, and other factors beyond just gross income.

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

Q5: How accurate is this calculator?
A: It provides a basic estimate. For precise calculations, consult a tax professional or payroll specialist.