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Paycheck Calculator Instructions
Below are some general instructions for successfully using the Paycheck calculator to properly
calculate your tax withholding.
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Remember - Always use your most current pay statement as a guide when using the Paycheck
calculator. It has your correct gross pay, before-tax deductions and taxable benefits to be used in the net pay
calculation.
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- Gross Pay - Use your current total earnings from the "Hours and Earnings" section
of your pay statement.This will include ALL pay received for a particular pay period.
- Imputed Income - This includes both employer-paid "non-cash" taxable fringe benefits,
such as employer-provided vehicles, complementary season tickets, and gift certificates, and the taxable portion of employer-paid life insurance benefits.
- Non-cash taxable fringe benefits are found in the
"Hours and Earnings" section of your pay statement. It is NOT,
however included in the Total Earnings line for that section.
- Employer-paid life insurance benefits are found in the "Employer-Paid Benefits" section of the pay statement, noted with an
asterisk (*).Imputed Income adds to
taxable gross for the tax withholding calculations, but does not add to net pay.
- Before-Tax Deductions - To properly compute your tax withholding, you MUST include your current
before-tax deductions found in the "Before-Tax Deductions" section of
your pay statement.
- Social Security Tax - The paycheck calculator will calculate social security (OASDI) and Medicare
taxes, commonly referred to as FICA taxes, even though you may not be subject
to those taxes. Please keep this in mind
when using the Paycheck Calculator.
- After-Tax Deductions - After-tax deductions have no impact on your tax withholding, but are used in
determining your net pay calculation. The total of all your after-tax
deductions are found in the "After-Tax Deductions" section of your
statement.
Important Information:
The calculator that is provided on this web site is only meant to provide
general guidance and estimates about the payroll process.It should not be relied upon to calculate
exact taxes, payroll or other financial data.It may not match your paycheck precisely and is not intended to provide
tax or legal advice.You should consult
with a professional advisor or accountant concerning your specific concerns.
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