Below are your Colorado salary paycheck results. The results are broken up into three sections: "Paycheck Results" is your gross pay and specific deductions from your paycheck, "Net Pay" is your take-home pay, and "Calculation Based On" is the information entered into the calculator.
To understand your paycheck better and learn what are FIT, SUI, SDI, FLI, WC, and other taxes, check the payroll results FAQs below the results.
Currently, 43 states and territories impose a state income tax (SIT). Generally, employees will pay SIT based on where they live. Most states calculate their tax similarly to federal methods. They have their own state withholding form and tax brackets and depend on the employee’s marital status and specified withholding allowances. Check Colorado’s withholding method in our free Payroll Resources.
Which states don’t have state income tax?
There are 9 states that do not have state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Which U.S. states have no income tax? Note that this doesn’t apply to bonuses.
What is Unemployment Insurance (SUTA and SUI)?
SUTA (State Unemployment Tax Act) and SUI (State Unemployment Insurance) are payroll taxes that employers, and in some states employees, have to pay to their state unemployment fund. These contributions support unemployment payments for displaced workers.
In our paycheck calculators, SUI is used to refer to the unemployment tax paid by the employee. AK, NJ, and PA have an employee unemployment tax.
The more taxable income you have, the higher tax rate you are subject to. This calculation process can be complex, so PaycheckCity’s free calculators can do it for you!
The federal income tax is a tax on annual earnings for individuals, businesses, and other legal entities. All wages, salaries, cash gifts from employers, business income, tips, gambling income, bonuses, and unemployment benefits are subject to a federal income tax.
For each payroll, federal income tax is calculated based on the answers provided on the W-4 and year to date income, which is then referenced to the tax tables in IRS Publication 15-T. The current tax rates are 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37%. Again, the percentage chosen is based on the paycheck amount and your W4 answers.
How is an employee’s Social Security and Medicare taxes calculated?
Social Security tax is 6.2% on $147,000 of earned income. The maximum Social Security tax for employees is $9,114. Social Security is also known as OASDI (Old Age, Survivors, and Disability Insurance). Employees can log into www.ssa.gov to verify their wages and confirm their benefits at various retirement ages.
Medicare is meant to supplement an employee’s healthcare benefits when they reach retirement age. Both employers and employees are required to contribute to Medicare at a rate of 1.45%. For employees, there is an additional 0.9% Medicare tax on wages earned after a $200,000 threshold. This means when an employee’s income reaches $200,000 in a calendar year, the employer should withhold 2.35% for Medicare, and it’s called the Additional Medicare Tax. The Social Security and Medicare taxes are collectively known as FICA (Federal Insurance Contributions Act).
Are some deductions not taxed by federal income tax?
Yes, some examples of pre-tax deductions include 401(k), health insurance, and flexible spending accounts (FSA).
What are pre-tax and post-tax deductions?
Pre-tax deductions are deducted before federal/state withholding taxes are imposed. Post-tax deductions are deducted after being taxed. An example of a post-tax deduction is a Roth 401(k).
How do I get my paycheck?
An employer might choose to distribute earnings by check, but more commonly these days the pay is deposited directly into the employee’s checking account automatically, based on the pay frequency. If your paycheck is late or inaccurate, contact your HR department.
The calculators on this website are provided by Symmetry Software and are designed to provide general guidance and estimates. These calculators should not be relied upon for accuracy, such as to calculate exact taxes, payroll or other financial data. Neither these calculators nor the providers and affiliates thereof are providing tax or legal advice. You should refer to a professional adviser or accountant regarding any specific requirements or concerns.