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Net Hourly Pay Formula:
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Net Hourly Pay represents the actual amount you earn per hour after all deductions (taxes, FICA, etc.) have been subtracted from your gross pay. It provides a more accurate picture of your take-home earnings than gross hourly pay.
The calculator uses the following formula:
Where:
Explanation: The formula calculates your true hourly earnings by accounting for all mandatory deductions and dividing by the total annual hours worked.
Details: Understanding your net hourly pay helps with budgeting, comparing job offers, and making informed financial decisions. It's particularly important for California POST employees who may have unique tax considerations.
Tips: Enter your annual gross pay and all tax amounts in USD. Input your typical weekly working hours. All values must be positive numbers (hours must be greater than 0).
Q1: Why use 52 weeks instead of accounting for vacation?
A: This calculation assumes you're paid for all 52 weeks, even if you take vacation. If unpaid leave is significant, adjust hours accordingly.
Q2: Should I include overtime in gross pay?
A: Yes, include all taxable income to get an accurate net hourly rate.
Q3: How do I find my exact tax amounts?
A: Check your W-2 form or annual pay statements for federal and state tax withholdings.
Q4: Does this account for California-specific deductions?
A: The calculator includes California state tax but you may need to add other local deductions if applicable.
Q5: Is FICA always 7.65% of gross pay?
A: Generally yes, but there's a wage base limit for Social Security ($160,200 in 2023). For high earners, FICA may be less.