Business & Finance Taxes

How to Calculate Income Taxes with Paycheck City

    • 1). Take your gross pay. This is the total you will use to calculate federal and state income taxes. Social Security and Medicare are figured on the gross income before any pre tax deductions.

    • 2). Go to Paycheck City calculator listed in the resource box. At the top, select the year and state. Under rate information, enter your pay per hour and the total number of hours you worked for the particular paycheck.

    • 3). Enter your gross income. Then select the pay frequency, federal filing status, number of allowances (exemptions on the W-4) and any additional money you have withheld for federal taxes if any. If you are exempt from Medicare, FICA or federal taxes, mark the appropriate box.

    • 4). Enter state information in the next section. This includes allowances and any extra money you have deducted for state taxes. Then click calculate and you are taken to a new page that shows you your federal tax, state tax, Social Security and Medicare tax. It then gives you a net pay.

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