Payroll Deductions Calculator

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Payroll Deduction Calculator

Calculating payroll deductions doesn't have to be a headache. Use this handy tool to fine-tune your payroll information and deductions, so you can provide your staff with accurate paychecks and get deductions right the first time around. Updated with current IRS withholding information for 2018

Marginal Tax Rate Calculator for 2017
Please view the report to see detailed results in tabular form.

Definitions

Federal Income Tax Rates
Use the table below to assist you in estimating your federal tax rate.
Filing Status and Income Tax Rates 2017*
Tax Rate Married Filing Jointly or Qualified Widow(er) Single Head of Household Married Filing Separately
10% $0 - $18,650 $0 - $9,325 $0 - $13,350 $0 - $9,325
15% $18,650 - $75,900 $9,325 - $37,950 $13,350 - $50,800 $9,325 - $37,950
25% $75,900 - $153,100 $37,950 - $91,900 $50,800 - $131,200 $37,950 - $76,550
28% $153,100 - $233,350 $91,900 - $191,650 $131,200 - $212,500 $76,550 - $116,675
33% $233,350 - $416,700 $191,650 - $416,700 $212,500 - $416,700 $116,675 - $208,350
35% $416,700 - $470,700 $416,700 - $418,400 $416,700 - $444,550 $208,350 - $235,350
39.6% Over $470,700 Over $418,400 Over $444,550 Over $235,350
*Caution: Do not use these tax rate schedules to figure 2016 taxes. Use only to figure 2017 estimates. Source: Rev. Proc. 2016-55
Wages, salaries, tips, etc.
This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).
Filing status
Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.

Filing Status
Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately".
Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.
Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.
Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".

For 2017, the standard deductions are:

Standard Deduction for 2017 Federal Income Tax
Filing Status Standard Deduction
Married Filing Joint $12,700
Qualified Widow(er) $12,700
Single $6,350
Heads of Household $9,350
Married Filing Separately $6,350
Are you someone's dependent?
Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
Number of additional dependents
A dependent is someone you support and for whom you can claim a dependency exemption. In 2017, each dependent you claim entitles you to receive a $4,050 reduction in your taxable income.
Dependents qualifying for child tax credit
You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
Itemized deductions
This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year, interest on a mortgage and any charitable contributions. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.

Your standard deduction will be automatically calculated for you based on the filing status and number of dependents you enter. If the number you enter here is lower, your standard deduction will be used to determine your average tax rate.

Definitions

Pay period

This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year), and Annually (one paycheck per year).

Gross pay

This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.

Filing status

This is your income tax filing status. The choices are 'Single' and 'Married'. Choose 'Married' if you are married or file as 'head of household'. Choose 'Single' if you file your taxes as a single person or if you are married but file separately.

Number of allowances

When your Federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2018, each allowance you claim is equal to $4,050 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from 0 to 99 allowances.

401(k)/403(b) plan withholding

This is the percent of your gross income you put into a taxable deferred retirement account such as a 401(k) or 403(b). While increasing your retirement account savings does lower your take home pay, it also lowers your Federal income tax withholdings. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your 401(k) or 403(b) plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2018, the maximum contribution to a 401(k) or 403(b) is $18,000 per year for individuals under 50 and $24,500 for individuals 50 or older.

State and local taxes

This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $4,050 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.

Flexible Spending Account (FSA) Contribution

The amount that will be deducted from your paycheck each pay period for your FSA participation. All amounts are considered pre-tax deductions from your paycheck when you participate in your company's FSA plan. We consider these expenses to be ordinary after-tax expenses if you do not participate.

Dependent Day Care Expenses

The annual amount that you wish to contribute to a Flexible Spending Account (FSA) for medical and dental expenses. All amounts you enter here are considered pre-tax deductions from your paycheck if you participate in your company's medical FSA. We consider these expenses to be ordinary after-tax expenses if you do not participate. In 2018 the maximum annual contribution to a medical FSA is $2600 per year. This amount is indexed for inflation for years after 2018.

Insurance Premiums

The annual amount that you wish to contribute to Flexible Spending Account (FSA) for dependent expenses. All amounts you enter here are considered pre-tax deductions from your paycheck if you participate in your company's dependent care FSA. We consider these expenses to be ordinary after-tax expenses if you do not participate. The maximum annual contribution is $5000 per household. If your spouse participates in dependent care FSA the combined household limit is $5000.

Out-of-pocket medical

The annual amount that you wish to contribute to a Flexible Spending Account (FSA) for health insurance premiums. All amounts you enter here are considered pre-tax deductions from your paycheck if you participate in your company's medical FSA. We consider these expenses to be ordinary after-tax expenses if you do not participate. The maximum annual contribution of $2650 per year does not apply to health insurance premiums.

Out-of-pocket dental & vision

The annual amount that you wish to contribute to a Flexible Spending Account (FSA) for adoption assistance. All amounts you enter here are considered pre-tax deductions from your paycheck if you participate in your company's adoption FSA. We consider these expenses to be ordinary after-tax expenses if you do not participate. Contribution limits for an adoption assistance are set by your employer's FSA plan. Unlike other FSA contributions, adoption assistance FSA contributions do not reduce your Social Security or Medicare taxes.

Year-to-date earnings

Your current year gross earnings that were subject to FICA taxes (Social Security tax and Medicare tax). This total should not include the current payroll period or any income from other sources or employers. We use this amount to determine if you are required to have Social Security tax or additional Medicare tax withheld for the current payroll period. Typically, this is your gross earnings minus employer paid health insurance and any Flexible Spending Account (FSA) contributions. In 2018, year-to-date earnings is not required or used for incomes under $128,400 per year, or if your current year-to-date earnings plus your current payroll does not exceed $128,400.

Social Security tax

For 2018, Social Security tax is calculated as your gross earnings times 6.2%. For 2018, incomes over $128,400 that have already had the maximum Social Security tax of $7,960.80 withheld will not have additional withholdings. Please note that if you have other wages or employers this calculator does not make any assumptions as to the total Social Security tax withheld for the current year other than the actual inputs for this calculator. This tax is also referred to as the Federal Insurance Contributions Act Old Age Survivors and Disability Insurance (FICA OASDI).

Medicare tax

Medicare tax is calculated as your gross earnings times 1.45%. Unlike the Social Security tax, there is no annual limit to the Medicare tax. Starting in 2013, an additional Medicare tax of 0.9% is withheld on all gross earnings paid in excess of $200,000 in a calendar year. If you enter an amount for the year-to-date gross earnings, this additional Medicare tax will be calculated based on the current period's gross earnings that exceed the annual $200,000 threshold. If no year-to-date amount is entered, any additional Medicare tax withholding will be calculated only for any gross earnings in excess of $200,000 for the current payroll period. If year-to-date wages prior to the current payroll period have exceeded $200,000, the year-to-date wages must be entered to calculate an accurate additional Medicare tax.

Federal tax withholding calculations

Federal income tax withholdings were calculated by:

  1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtracting the value of allowances allowed (for 2018, this is $4,050 multiplied by withholding allowances claimed).
  3. Determining your annual tax by using the tables below (single and married rates, respectively).
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.

 

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.