1. What is Net Salary?

Net salary (take-home pay) is the amount an employee receives after all deductions from the gross salary. It's calculated by subtracting taxes (federal, state) and other mandatory deductions (like FICA) from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total earnings before any deductions
• Federal Tax — Amount withheld for federal income tax
• State Tax — Amount withheld for state income tax
• FICA — Social Security and Medicare taxes (7.65% of gross salary typically)

Explanation: The calculator provides an estimate of take-home pay after subtracting major tax deductions.

3. Importance of Salary Calculation

Details: Understanding net salary helps with personal budgeting, financial planning, and verifying paycheck accuracy. It shows the actual amount available for living expenses after mandatory deductions.

4. Using the Calculator

Tips: Enter all values in dollars. For most accurate results, use actual tax withholding amounts from your pay stub. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is total earnings before deductions, while net salary is the actual amount you receive after all deductions.

Q2: How is FICA calculated?
A: FICA is typically 7.65% of gross pay (6.2% for Social Security + 1.45% for Medicare). Higher earners may pay additional Medicare tax.

Q3: Why does my state tax vary?
A: State tax rates differ by state (some have none), and withholding depends on your W-4 allowances and state-specific forms.

Q4: Are there other deductions not included here?
A: Yes, this calculator shows major deductions. Other deductions might include health insurance, retirement contributions, or wage garnishments.

Q5: How often should I calculate my net salary?
A: Whenever your income or tax situation changes (raise, new job, tax law changes) to maintain accurate budgeting.