1. What is the Paycheck City Salary Calculator?

The Paycheck City Salary Calculator estimates taxes for employees in Texas, calculating Federal Tax and FICA (Social Security and Medicare) contributions based on gross pay, filing status, and pay frequency.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Federal\ Tax \) — Calculated based on IRS tax brackets and filing status
• \( FICA \) — Social Security (6.2%) + Medicare (1.45%) taxes

Explanation: The calculator estimates taxes for Texas residents (which has no state income tax) based on current federal tax rates.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps employees understand their take-home pay and plan their finances accordingly.

4. Using the Calculator

Tips: Enter your gross pay amount, select your filing status and pay frequency. The calculator will estimate your federal tax and FICA contributions.

5. Frequently Asked Questions (FAQ)

Q1: Why doesn't this calculator include state taxes?
A: Texas doesn't have a state income tax, so only federal taxes and FICA are calculated.

Q2: Are these calculations exact?
A: This provides estimates. Actual tax amounts may vary based on deductions, credits, and other factors.

Q3: What's included in FICA?
A: FICA includes 6.2% for Social Security (on income up to the annual limit) and 1.45% for Medicare.

Q4: How often should I calculate my taxes?
A: Whenever your income or filing status changes, or at least annually to adjust withholdings.

Q5: Can I use this for contract work?
A: Contractors typically pay self-employment tax (15.3%) instead of FICA, so this calculator isn't designed for that.