If you’ve always been intrigued about all the deductions that are written on your payslip and would want to have an overview or a deeper understanding of where your money goes, you can try tinkering with online paycheck calculators.
Online paycheck calculators are tools which allow you to plug in information about your regular and overtime pay rates, and the hours you have worked (regular and overtime work). In some online paycheck calculators, you don’t need to plug in information on taxes and deductions, as these are already inputted in the system. Once you click on the compute button, the online paycheck calculator will automatically compute how much you are earning per day (or per week), how much money goes to taxes and how much you should expect to receive every payday (which may or may not already inclusive of the necessary deductions).
Aside from seeing where your money goes, you can use online paycheck calculators o verify the figures (deductions, etc) that you see on your payslip. Small business, on the other hand, can use these online tools to easily calculate the salaries due their employees on each payday.
There are several kinds of online paycheck calculators available on the internet. Some are fairly simple and straight forward; whereas some are more complicated than the others and these calculators are able to compute figures taking into consideration local, state, and even federal-specific tax deductions. Incidentally, the tax rates of online paycheck calculators are updated automatically thus, you can be assured that the figures you get are always fairly accurate.
You may use the online paycheck calculator as a guide if you’re just curious to know more about where your money is going. However, if you have more detailed questions or queries regarding your deductions or your take home pay in general, it is still best that you consult with your in-house accounting or payroll department. They are in the best position to explain all the nuances and intricacies of the money you receive (or don’t receive for that matter).
If you are a small business, you can use the online paycheck calculator to make initial computations on the salaries of your employees. However, it may be wise to have these initial figures checked or verified by your accounting or payroll staff or professional accounting personnel. Having these two tasks done twice may seem redundant, but if by doing this you can rest assured that the IRS won’t come after you for incorrect tax returns, then it will be well worth the effort.
Online paycheck calculators can be accessed from the internet by anyone at anytime and can be used for free. There is no need to log in or register in a specific website in order to use these tools.