1. What is Net Salary?

Net salary, often called take-home pay, is the amount of money an employee receives after all deductions (taxes, insurance, retirement contributions, etc.) have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

Explanation: This calculation provides the actual amount you'll receive in your paycheck after mandatory deductions.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with personal budgeting, financial planning, and ensuring proper tax withholding amounts.

4. Using the Calculator

Tips: Enter your gross salary and all deduction amounts in dollars. 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 your total compensation before deductions, while net salary is what you actually take home after all deductions.

Q2: Are there other deductions not included here?
A: Yes, this calculator focuses on major tax deductions. Other deductions might include health insurance, retirement contributions, etc.

Q3: How accurate is this calculator?
A: It provides a basic estimate. For precise calculations, consult your pay stubs or HR department.

Q4: Why is FICA separate from other taxes?
A: FICA (Federal Insurance Contributions Act) covers Social Security and Medicare taxes, which are separate from income taxes.

Q5: Does this account for San Francisco-specific taxes?
A: This calculator includes California state taxes but doesn't account for any local San Francisco taxes that might apply.