Frequently Asked Questions
Do you store any of the financial data I enter?
No. All calculations are performed directly in your browser. We do not see, store, or share any of your personal financial information.
Why are the results from this calculator different from my actual paycheck?
This calculator provides a close estimate for educational purposes, but it simplifies some complex tax rules. Your actual paycheck may be different due to factors like local taxes, specific state withholding rules, Roth 401(k) contributions, Health Savings Accounts (HSAs), or other unique deductions that are not included in this tool.
What's the difference between pre-tax deductions like 401(k) and health insurance?
While both reduce your taxable income, they are treated slightly differently. Health, dental, and vision insurance premiums are typically deducted before FICA taxes (Social Security and Medicare) are calculated. 401(k) contributions, however, are deducted after FICA taxes have been taken out.
Why is my "Net Raise Increase" so much lower than the gross raise amount?
Your "Net Raise Increase" is the amount of money you'll actually take home after all taxes have been deducted. The gross raise is the pre-tax amount, so your net increase will always be lower due to federal, state, and FICA taxes.
How is the "After-Tax Bonus" calculated?
Bonuses are often considered "supplemental wages" and are typically withheld at a flat federal rate of 22%. Our calculation estimates the after-tax amount by deducting this 22% federal tax, your state income tax, and FICA taxes.
Who is "FICA" and why is he taking so much of my money?
FICA stands for the Federal Insurance Contributions Act. It's a U.S. federal payroll tax used to fund Social Security and Medicare. Both employees and employers are required to contribute.
How does overtime affect my taxes?
Overtime pay is taxed just like your regular income. While it might feel like it's taxed at a higher rate, it's simply added to your gross income, which could potentially push you into a higher tax bracket for that portion of your earnings.
What does "Federal Income Tax Exempt" mean?
If you claim "exempt" on your W-4 form, your employer will not withhold any federal income tax from your paychecks. You might do this if you had no tax liability last year and expect the same this year. However, you will still have to pay FICA taxes.
Does the "Work Backwards" calculator account for taxes?
Yes, it does. When you enter your desired net (after-tax) income increase, the calculator works backward through the tax logic to determine the gross (pre-tax) raise percentage you would need to ask for to achieve that goal.
Can I use this calculator for previous tax years?
No, this calculator is specifically configured with the tax brackets and deduction amounts for the 2024 tax year. Using it for other years will not produce an accurate estimate.