1. What is Net Hourly Pay?

Net hourly pay is the amount you actually take home after all mandatory deductions (federal tax, state tax, and FICA) are subtracted from your gross hourly wage. This is your actual earnings per hour of work.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Hourly} \) — Your hourly wage before deductions
• \( \text{Federal Tax} \) — Based on your selected tax bracket
• \( \text{California State Tax} \) — California-specific state income tax
• \( \text{FICA} \) — Fixed 7.65% for Social Security and Medicare

3. Understanding California State Taxes

Details: California has progressive state income tax rates starting at 1% for lower incomes. The calculator allows you to input your specific tax rate based on your income bracket.

4. Using the Calculator

Tips: Enter your gross hourly wage, federal tax rate (based on your tax bracket), and California state tax rate. The calculator will automatically include the standard 7.65% FICA deduction.

5. Frequently Asked Questions (FAQ)

Q1: What is FICA?
A: FICA stands for Federal Insurance Contributions Act, which includes 6.2% for Social Security and 1.45% for Medicare taxes.

Q2: How do I know my federal tax rate?
A: Federal tax rates are progressive. For 2023, they range from 10% (up to $11,600/year) to 37% (over $578,125/year).

Q3: Are there other deductions not included?
A: This calculator covers basic mandatory deductions. Your actual paycheck may include other deductions like health insurance or retirement contributions.

Q4: Does this account for California-specific deductions?
A: The calculator uses standard rates. California offers some special deductions that would need to be calculated separately.

Q5: Is this calculator suitable for salaried employees?
A: For salaried employees, you would need to convert your annual salary to an hourly rate first.