Free Online Payroll Calculator
Calculate gross pay, net pay, tax deductions, and overtime with our comprehensive payroll calculator. Support for multiple pay periods including weekly, bi-weekly, and monthly calculations.
How to Use This Payroll Calculator
Our comprehensive payroll calculator helps you determine your gross pay, net pay, and all deductions accurately. Follow these simple steps:
Step 1: Choose Your Pay Type
Select whether you're paid hourly or receive a salary. This determines which fields you'll need to fill out.
Step 2: Select Pay Period
Choose how often you get paid - weekly, bi-weekly, semi-monthly, or monthly. This affects how your annual calculations are divided.
Step 3: Enter Your Pay Information
For hourly workers, enter your hourly rate, regular hours, and any overtime hours. For salaried employees, enter your annual salary.
Step 4: Configure Tax Rates
Enter your federal and state tax rates. The calculator comes with default rates, but you can adjust them based on your specific situation.
Step 5: Add Deductions
Include any deductions such as health insurance premiums, retirement contributions, or other deductions from your paycheck.
Step 6: Calculate
Click the "Calculate Payroll" button to see your detailed payroll breakdown including gross pay, all deductions, and net pay.
About This Payroll Calculator
This free online payroll calculator is designed to help employees, employers, and HR professionals quickly and accurately calculate payroll information. Whether you're planning your budget, verifying your paycheck, or preparing payroll for your business, this tool provides comprehensive calculations.
The calculator handles both hourly and salaried employees, supports multiple pay periods, and includes all major deductions including federal taxes, state taxes, Social Security, Medicare, and voluntary deductions like health insurance and retirement contributions.
All calculations are performed in real-time using current tax rates and formulas, ensuring accuracy and reliability for your payroll planning needs.
Payroll Calculation Formulas
Our payroll calculator uses the following formulas to ensure accurate calculations:
Gross Pay Calculation
For Hourly Employees:
Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × Overtime Multiplier)
For Salaried Employees:
Gross Pay = Annual Salary ÷ Number of Pay Periods per Year
Tax Calculations
Federal Tax: Gross Pay × Federal Tax Rate ÷ 100
State Tax: Gross Pay × State Tax Rate ÷ 100
Social Security: Gross Pay × 6.2% (up to annual limit)
Medicare: Gross Pay × 1.45%
Net Pay Calculation
Net Pay = Gross Pay - (Federal Tax + State Tax + Social Security + Medicare + Other Deductions)
Use Cases and Applications
This payroll calculator is useful for numerous scenarios:
For Employees
- Verify paycheck accuracy
- Budget planning and financial forecasting
- Compare job offers with different pay structures
- Calculate take-home pay for new positions
- Understand the impact of raises or bonus payments
For Employers and HR
- Quick payroll estimates for new hires
- Verify payroll calculations
- Calculate labor costs for budgeting
- Determine cost of employee raises
- Plan for seasonal or overtime labor costs
For Freelancers and Contractors
- Estimate taxes on contract income
- Calculate equivalent hourly rates for salary positions
- Plan for quarterly tax payments
- Compare contract vs. employee compensation
Payroll Calculation Examples
Here are some practical examples of how to use the payroll calculator:
Example 1: Hourly Employee
Scenario: John works 40 regular hours and 5 overtime hours at $20/hour
- Regular Pay: 40 hours × $20 = $800
- Overtime Pay: 5 hours × $20 × 1.5 = $150
- Gross Pay: $800 + $150 = $950
- After taxes and deductions: ~$750 net pay
Example 2: Salaried Employee
Scenario: Sarah earns $60,000 annually, paid bi-weekly
- Gross Pay per Period: $60,000 ÷ 26 = $2,307.69
- Federal Tax (12%): $276.92
- State Tax (5%): $115.38
- FICA (7.65%): $176.54
- Net Pay: ~$1,739 per pay period
Example 3: High Earner with Maximum Social Security
Scenario: Mike earns $150,000 annually
Social Security tax applies only to the first $160,200 (2023 limit), so high earners pay less percentage-wise on total income.
Frequently Asked Questions (FAQ)
How accurate is this payroll calculator?
Our calculator uses current tax rates and standard formulas. However, actual payroll may vary based on specific circumstances, local taxes, and other factors. Always consult with a payroll professional for official calculations.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after taxes and other deductions are subtracted from gross pay.
How is overtime calculated?
Overtime is typically calculated at 1.5 times your regular hourly rate for hours worked over 40 per week. Some states or employers may have different overtime rules.
What taxes are included in payroll deductions?
Standard payroll deductions include federal income tax, state income tax (if applicable), Social Security tax (6.2%), and Medicare tax (1.45%). Additional deductions may include health insurance, retirement contributions, and other voluntary deductions.
Can I use this calculator for different pay periods?
Yes, our calculator supports weekly, bi-weekly, semi-monthly, and monthly pay periods. Select your pay period to get accurate calculations.
What if my state doesn't have income tax?
If your state doesn't have income tax, simply enter 0% for the state tax rate. The calculator will adjust accordingly.
How do I calculate taxes for a bonus or commission?
Bonuses and commissions are typically taxed at a higher rate (supplemental wage rate). Add the bonus amount to your regular pay and use the appropriate tax rates.
Is this calculator suitable for contractors?
This calculator is designed for employees with payroll deductions. Contractors typically don't have taxes withheld and need to calculate quarterly estimated taxes separately.