1. What is this Calculator?

This calculator helps Massachusetts residents earning $120,000 annually estimate their net paycheck after federal tax, state tax, and FICA deductions based on their pay schedule.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Pay\ Periods \) — Number of paychecks per year (e.g., 26 for biweekly)
• \( Federal\ Tax \) — Federal income tax withheld per paycheck
• \( MA\ State\ Tax \) — Massachusetts state income tax withheld per paycheck
• \( FICA \) — Social Security and Medicare taxes per paycheck

Explanation: The calculation starts with the annual salary divided by pay periods to get gross pay per paycheck, then subtracts all deductions.

3. Understanding Your Paycheck

Details: Massachusetts has a flat 5% state income tax rate. Federal tax varies based on withholding allowances. FICA is typically 7.65% of gross wages up to Social Security wage base.

4. Using the Calculator

Tips: Enter your number of pay periods per year (12 for monthly, 26 for biweekly, 52 for weekly) and your estimated deductions per paycheck. Contact your HR department for exact deduction amounts.

5. Frequently Asked Questions (FAQ)

Q1: What are typical pay periods?
A: Common pay schedules are weekly (52), biweekly (26), semimonthly (24), and monthly (12).

Q2: How accurate is this calculator?
A: This provides an estimate. Actual paychecks may vary based on exact withholding elections, pre-tax deductions, and other factors.

Q3: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes. There's an additional 0.9% Medicare tax on wages over $200,000.

Q4: Are Massachusetts taxes different?
A: MA has a flat 5% state income tax, unlike progressive systems in most states. Some cities may add local taxes.

Q5: Can I use this for other salaries?
A: This calculator is specifically designed for $120,000 annual salary. Different salaries would require different calculations.