1. What is ADP Withholding Calculator?

The ADP Withholding Calculator estimates your take-home pay by calculating federal tax, state tax, and FICA (Social Security and Medicare) withholdings based on your salary, filing status, and state of residence.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Federal Tax — Based on IRS tax brackets and your filing status
• State Tax — Based on your state's tax rates
• FICA — Social Security (6.2%) and Medicare (1.45%) taxes

3. Importance of Accurate Withholding

Details: Proper withholding ensures you don't owe taxes at year-end or give the government an interest-free loan. It affects your monthly budget and financial planning.

4. Using the Calculator

Tips: Enter your gross salary per paycheck, select your federal filing status and state, and specify how many pay periods you have each year (typically 26 for bi-weekly or 24 for semi-monthly).

5. Frequently Asked Questions (FAQ)

Q1: Why are my withholdings different from the calculator?
A: The calculator provides estimates. Actual withholdings may vary based on additional factors like pre-tax deductions, bonuses, or special tax situations.

Q2: How often should I check my withholdings?
A: Review whenever your financial situation changes (marriage, new job, raise, child birth) or at least annually.

Q3: What if I have multiple jobs?
A: The calculator shows single-job withholding. Multiple jobs may require additional withholding to avoid underpayment.

Q4: Are bonuses taxed differently?
A: Yes, bonuses are typically withheld at a flat 22% federal rate (for amounts under $1 million).

Q5: How can I adjust my withholdings?
A: Submit a new W-4 form to your employer to adjust federal withholdings. State forms vary by state.