1. What is Net Hourly Pay?

Net hourly pay is the amount an employee actually takes home after all deductions (taxes, FICA, etc.) are subtracted from their gross hourly wage. For North Carolina state employees, this includes federal tax, state tax, and FICA (Social Security and Medicare) deductions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Hourly — The employee's hourly wage before deductions
• Federal Tax — Estimated federal income tax withholding per hour
• North Carolina State Tax — Estimated NC state income tax withholding per hour
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)

3. Importance of Calculating Net Pay

Details: Understanding net pay helps employees budget effectively and understand their true earnings after mandatory deductions. For North Carolina state employees, this is particularly important as state tax rates may differ from other states.

4. Using the Calculator

Tips: Enter all values in USD per hour. For most accurate results, use paycheck stubs or tax withholding calculators to determine your exact federal and state tax rates per hour worked.

5. Frequently Asked Questions (FAQ)

Q1: How do I find my exact tax rates?
A: Use the IRS withholding calculator for federal tax and the NC Department of Revenue calculator for state tax.

Q2: Does this include other deductions?
A: No, this calculates only standard tax deductions. Retirement contributions, health insurance, etc. would need to be subtracted separately.

Q3: Is FICA always 7.65%?
A: Generally yes (6.2% Social Security + 1.45% Medicare), but high earners may have additional Medicare tax.

Q4: How often should I recalculate?
A: Recalculate whenever your tax situation changes (raise, new W-4, tax law changes).

Q5: Are NC state tax rates different for state employees?
A: No, NC state employees pay the same state income tax rates as other NC residents.