1. What is Net Pay?

Net pay, often called take-home pay, is the amount of money left after all deductions have been taken from gross wages. In Missouri, these deductions typically include federal tax, state tax, and FICA contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Pay \) — Total earnings before deductions
• \( Federal\ Tax \) — Federal income tax withholding
• \( Missouri\ State\ Tax \) — Missouri state income tax (1.5% up to $1,000, etc.)
• \( FICA \) — Social Security and Medicare taxes (7.65% of gross pay)

3. Understanding Wage Deductions

Details: Missouri has a progressive income tax system with rates from 1.5% to 5.4%. Federal tax depends on filing status and income level. FICA is typically 7.65% of gross pay (6.2% for Social Security and 1.45% for Medicare).

4. Using the Calculator

Tips: Enter all values in USD. For accurate results, use your actual tax withholdings from pay stubs or tax tables. The calculator assumes all values are annual amounts.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net pay?
A: Gross pay is total earnings before deductions, while net pay is what you actually receive after all deductions.

Q2: How is Missouri state tax calculated?
A: Missouri has a progressive tax system with rates from 1.5% on the first $1,000 to 5.4% on income over $8,000 (single filers).

Q3: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes. High earners may pay additional Medicare tax.

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 often should I calculate my net pay?
A: It's good practice to check whenever your income or tax situation changes (new job, raise, tax law changes, etc.).