1. What is the Salary Calculator?

This calculator helps determine your net annual pay after accounting for 401k contributions, pension contributions, and various taxes when you know your biweekly pay amount.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Biweekly Pay} \) — Your gross pay every two weeks
• \( \text{401k Contribution} \) — Annual 401k contribution amount
• \( \text{Pension Contribution} \) — Annual pension contribution amount
• \( \text{Federal Tax} \) — Annual federal income tax amount
• \( \text{State Tax} \) — Annual state income tax amount
• \( \text{FICA} \) — Annual FICA (Social Security and Medicare) tax amount

Explanation: The calculation first converts biweekly pay to annual salary, then subtracts retirement contributions and taxes to determine net pay.

3. Importance of Net Pay Calculation

Details: Understanding your net pay after all deductions helps with financial planning, budgeting, and retirement planning.

4. Using the Calculator

Tips: Enter all amounts in USD. For most accurate results, use your actual tax amounts from pay stubs or tax documents.

5. Frequently Asked Questions (FAQ)

Q1: Why multiply biweekly pay by 26?
A: There are 52 weeks in a year, and biweekly pay occurs every 2 weeks (52/2 = 26 pay periods).

Q2: Are 401k contributions pre-tax?
A: Traditional 401k contributions are typically pre-tax, reducing your taxable income.

Q3: What's included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes.

Q4: Should I include employer contributions?
A: No, only include your own contributions that come from your paycheck.

Q5: How accurate is this calculator?
A: It provides a good estimate but actual pay may vary based on specific tax situations and other deductions.