1. What is the Salary Calculator?

This calculator helps Indianapolis Airport employees determine their net pay after accounting for federal tax, Indiana state tax, and FICA contributions. It provides a clear breakdown of take-home pay.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Gross\ Pay \) — Total annual salary before deductions
• \( Federal\ Tax \) — Estimated federal income tax
• \( Indiana\ State\ Tax \) — Indiana state income tax
• \( FICA \) — Social Security and Medicare taxes

Explanation: The equation subtracts all mandatory deductions from gross pay to arrive at net take-home pay.

3. Importance of Net Pay Calculation

Details: Understanding net pay helps employees budget effectively and understand their true earnings after taxes and deductions.

4. Using the Calculator

Tips: Enter your annual gross pay and estimated tax amounts. All values must be positive numbers. For most accurate results, use values from your pay stub.

5. Frequently Asked Questions (FAQ)

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

Q2: How is Indiana state tax calculated?
A: Indiana has a flat state income tax rate of 3.15% (as of 2023) of taxable income.

Q3: What other deductions might affect my net pay?
A: This calculator doesn't account for voluntary deductions like retirement contributions, health insurance, or union dues.

Q4: How accurate is this calculator?
A: Accuracy depends on the tax values you input. For precise calculations, consult your pay stubs or a tax professional.

Q5: Does this account for tax exemptions or credits?
A: No, this is a basic calculator. Your actual tax liabilities may vary based on your specific tax situation.