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Net Pay Calculation:
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The Net Pay Calculation determines your take-home pay after accounting for all deductions including taxes and retirement contributions. In California, this includes federal tax, state tax, FICA (Social Security and Medicare), and any retirement plan contributions.
The calculator uses the following equation:
Where:
Details: Understanding your net pay helps with budgeting, retirement planning, and financial decision-making. California has some of the highest state taxes in the U.S., making accurate calculations particularly important.
Tips: Enter your gross annual salary, estimated tax amounts, and retirement contributions. For accurate results, use paycheck stubs or tax calculators to determine your exact tax amounts.
Q1: What's the difference between gross pay and net pay?
A: Gross pay is your total earnings before deductions, while net pay is what you actually take home after all deductions.
Q2: How do I estimate my tax amounts?
A: Use IRS tax tables for federal tax and California FTB tables for state tax, or consult a tax professional.
Q3: Are retirement contributions pre-tax or post-tax?
A: Traditional 401k/IRA contributions are pre-tax (reduce taxable income), while Roth contributions are post-tax.
Q4: What other deductions might affect net pay?
A: Health insurance premiums, HSA contributions, wage garnishments, and other voluntary deductions may apply.
Q5: Does this account for California-specific deductions?
A: This calculator includes California state tax but doesn't account for local taxes or SDI (State Disability Insurance).