1. What is the Paycheck Calculator?

The Paycheck Calculator helps you determine your net pay after accounting for federal tax, Illinois state tax, and FICA contributions. It provides a quick estimate of your take-home salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Pay \) — Your total annual salary before deductions
• \( Federal\ Tax \) — Estimated federal income tax amount
• \( Illinois\ State\ Tax \) — Estimated Illinois state income tax
• \( FICA \) — Social Security and Medicare contributions

Explanation: The calculation subtracts all mandatory deductions from your gross pay to determine your actual take-home pay.

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and ensuring proper tax withholding throughout the year.

4. Using the Calculator

Tips: Enter your annual gross pay and estimated tax amounts in USD. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes, totaling 7.65% of your gross pay.

Q2: How is Illinois state tax calculated?
A: Illinois has a flat income tax rate of 4.95% of taxable income.

Q3: Are there other deductions not included here?
A: Yes, this calculator doesn't account for retirement contributions, health insurance, or other voluntary deductions.

Q4: Should I use annual or paycheck amounts?
A: This calculator uses annual amounts. Divide by pay periods for per-paycheck amounts.

Q5: How accurate is this estimate?
A: This provides a basic estimate. Actual take-home pay may vary based on specific tax situations.