Deductions Breakdown
| Deduction | Amount | % of Gross |
|---|---|---|
| Federal Income Tax | $175.23 | 8.8% |
| Social Security | $124.00 | 6.2% |
| Medicare | $29.00 | 1.5% |
| State Income Tax | $153.45 | 7.7% |
| Pre-tax Deductions | $350.00 | 17.5% |
| Total Deductions | $831.68 | 41.6% |
⚠ Estimates only. Tax rates and rules change frequently. This tool does not constitute tax or financial advice. Consult a qualified tax professional for your actual liability.
Pay Stub Preview
⚠ Estimates only. Consult a tax professional.
From hours to paycheck — Timemoz handles the full cycle.
Timemoz tracks your team's hours, calculates pay automatically, and generates payroll-ready reports. Stop estimating — start running payroll.
Start Free Plan →How to Calculate Your Paycheck
Follow these five steps to go from gross earnings to your actual take-home pay.
Determine Gross Pay
Hourly: multiply hours × rate. Salary: divide annual amount by pay periods.
Subtract Pre-tax Deductions
401(k), HSA, FSA, and employer-sponsored health insurance reduce your taxable income.
Apply Tax Withholdings
Federal income tax, FICA (Social Security 6.2% + Medicare 1.45%), and state income tax are withheld.
Subtract Post-tax Deductions
Roth 401(k) contributions, wage garnishments, and other post-tax items come out next.
Result = Net Pay
This is the amount that hits your bank account each pay period.
Employee vs. Contractor Pay
How you're classified changes both what's withheld and what you owe.
Employee (W-2)
- ✓ Employer withholds federal, state & FICA taxes
- ✓ Employer pays half of FICA (7.65%)
- ✓ You pay the other half (7.65%)
- ✓ Access to employer benefits (401k match, health)
- ✗ Less control over deductions and write-offs
Contractor (1099)
- ✓ No tax withholding — you manage it yourself
- ✓ Deduct legitimate business expenses
- ✓ More flexibility in work structure
- ✗ Pay full SE tax (15.3%) on net earnings
- ✗ Must make quarterly estimated tax payments
Understanding Common Deductions
Every line on your pay stub represents money going somewhere — here's where.
Federal Income Tax
Based on taxable income, filing status, and W-4 withholding elections. Uses progressive brackets from 10% to 37%.
Social Security (OASDI)
6.2% of gross pay up to the annual wage base ($168,600 in 2024). Both employee and employer each pay 6.2%.
Medicare (FICA)
1.45% of all gross pay. An additional 0.9% applies on earnings above $200,000. No wage cap.
401(k) / 403(b)
Pre-tax retirement contributions reduce your taxable income dollar-for-dollar, up to the annual IRS limit ($23,000 in 2024).
Health Insurance
Employer-sponsored premium contributions are typically pre-tax, reducing your federal and state taxable income.
State Income Tax
Varies from 0% (TX, FL, WA, others) to over 13% (CA). Some states use flat rates; others use progressive brackets.
Pay Frequency Comparison
Your gross per-period pay depends on how often you're paid. Here's what a $60,000 annual salary looks like across all four frequencies.
| Frequency | Periods / Year | $60K/yr → Per Period |
|---|---|---|
| Weekly | 52× | $1,153.85 |
| Bi-weekly | 26× | $2,307.69 |
| Semi-monthly | 24× | $2,500.00 |
| Monthly | 12× | $5,000.00 |
Frequently Asked Questions
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Stop calculating overtime manually — Timemoz tracks it automatically
Timemoz automatically tracks your team's hours, flags overtime as it happens, and generates payroll-ready reports — so you never miss an hour or overpay again.