Michigan Salary Paycheck Calculator

There are 15 states with municipalities, counties, school districts, or special districts that impose local income taxes: Alabama, Maryland, Ohio, Colorado, Michigan, Oregon, Delaware, Missouri, Pennsylvania, Indiana, New Jersey, Washington, Kentucky, New York, and West Virginia.

To find your local taxes, head to our Michigan local taxes resources. To learn more about how local taxes work, read this guide to local taxes.

There are 3 different methods used to calculate local taxes, it depends on the jurisdiction.

1. Percentage of taxable wages: used by most
2. Flat tax (monthly or annual): used by Colorado and Pennsylvania Local Services Tax
3. Tax tables: used by the New York Localities

Most of these taxes are paid by the employee, but there are a few which are paid by the employer. This calculation process can be complex, but PaycheckCity’s payroll service can do it for you. Learn about PaycheckCity Payroll.

There are 15 states with municipalities, counties, school districts, or special districts that impose local income taxes: Alabama, Maryland, Ohio, Colorado, Michigan, Oregon, Delaware, Missouri, Pennsylvania, Indiana, New Jersey, Washington, Kentucky, New York, and West Virginia.

To find your local taxes, head to our Michigan local taxes resources. To learn more about how local taxes work, read this guide to local taxes.

For salaried employees, the number of payrolls in a year is used to determine the gross paycheck amount.
For example, let’s look at a salaried employee who is paid $52,000 per year:

• If this employee’s pay frequency is weekly the calculation is: $52,000 / 52 payrolls = $1,000 gross pay
• If this employee’s pay frequency is semi-monthly the calculation is: $52,000 / 24 payrolls = $2,166.67 gross pay

FICA (Federal Insurance Contributions Act) includes 2 taxes: Social Security and Medicare. Both Social Security and Medicare taxes are deducted from each paycheck to fund these important government programs.

In addition to withholding federal and state taxes, part of your gross income might also have to contribute to deductions. These are known as “pre-tax deductions” and include contributions to retirement accounts and some health care costs. For example, when you look at your paycheck you might see an amount deducted for your company’s health insurance plan and for your 401k plan. Pre-tax deductions result in lower take-home, but also means less of your income is subject to tax. Some deductions are “post-tax”, like Roth 401(k), and are deducted after being taxed.

In our calculators, you can add deductions under “Benefits and Deductions” and select if it’s a fixed amount, a percentage of the gross-pay, or a percentage of the net pay. For hourly calculators, you can also select a fixed amount per hour. For pre-tax deductions, check the Exempt checkboxes, meaning the deduction will be taxed.

In 2020, the IRS updated the Federal W4 form that eliminated withholding allowances. The redesigned Form W4 makes it easier for your withholding to match your tax liability. Here’s how to answer the new questions:

• Step 2: check the box if you have more than one job or you and your spouse both have jobs. This will increase withholding.
• Step 3: enter an amount for dependents.The old W4 used to ask for the number of dependents. The new W4 asks for a dollar amount. Here’s how to calculate it: If your total income will be $200k or less ($400k if married) multiply the number of children under 17 by $2,000 and other dependents by $500. Add up the total.
• Step 4a: extra income from outside of your job, such as dividends or interest, that usually don't have withholding taken out of them. By entering it here you will withhold for this extra income so you don't owe tax later when filing your tax return.
• Step 4b: any additional withholding you want taken out. Any other estimated tax to withhold can be entered here. The more is withheld, the bigger your refund may be and you’ll avoid owing penalties.

If your W4 on file is in the old format (2019 or older), toggle "Use new Form W-4" to change the questions back to the previous form. Employees are currently not required to update it. However if you do need to update it for any reason, you must now use the new Form W-4.