Professional Payroll Calculator

Calculate employee salaries, deductions, taxes, and generate detailed payroll reports. Free online tool for businesses and HR professionals.

Employee & Salary Details

How to Use This Payroll Calculator

Enter employee details, salary information, and applicable deductions to calculate accurate payroll. All calculations are based on standard payroll formulas and tax regulations.

Salary & Earnings

Deductions & Withholdings

Payroll Calculation Results

Employee Name John Smith
Employee ID EMP001
Pay Period Bi-Weekly

Earnings

Regular Pay $2,308.00
Overtime Pay $216.38
Bonus $500.00
Commission $250.00
Gross Pay $3,274.38

Deductions

Tax Withholdings

Federal Tax $392.93
State Tax $163.72
Social Security $203.01
Medicare $47.48
Health Insurance $200.00
401(k) Contribution $300.00
Total Deductions $1,307.14
Net Pay (Take Home) $1,967.24

Payroll Summary

Pay Date June 15, 2024
Hours Worked 80 Regular + 5 Overtime
Year-to-Date Gross $32,743.80
Year-to-Date Net $19,672.40

Payroll Reports & Export

Generate Detailed Payroll Reports

Create professional payroll reports that can be saved, printed, or exported for record keeping and accounting purposes.

Professional Payroll Calculator - Complete Guide

Why Use Our Payroll Calculator?

Our professional payroll calculator simplifies complex salary calculations for businesses of all sizes. Whether you're an HR professional, small business owner, or accountant, this tool provides accurate payroll calculations in seconds, eliminating manual errors and saving valuable time.

What is Payroll Calculation?

Payroll calculation is the process of determining the amount of money to be paid to employees for a specific pay period, after accounting for various deductions including taxes, insurance premiums, retirement contributions, and other withholdings.

Key Components of Payroll Calculation

How to Calculate Payroll Manually

  1. Determine Gross Pay: Calculate regular hours × hourly rate + overtime hours × overtime rate + bonuses + commissions
  2. Calculate Pre-tax Deductions: Subtract health insurance, retirement contributions (pre-tax)
  3. Calculate Taxable Income: Gross pay minus pre-tax deductions
  4. Withhold Federal Income Tax: Use IRS Publication 15-T or tax tables
  5. Withhold State/Local Taxes: Apply appropriate state tax rates
  6. Calculate FICA Taxes: Social Security (6.2% up to wage base limit) and Medicare (1.45%)
  7. Subtract Post-tax Deductions: Garnishments, union dues, etc.
  8. Calculate Net Pay: Final amount to be paid to employee

Common Payroll Formulas

Regular Pay Calculation: Hours Worked × Hourly Rate

Overtime Calculation: Overtime Hours × (Hourly Rate × Overtime Multiplier)

Gross Pay Formula: Regular Pay + Overtime Pay + Bonuses + Commissions

Net Pay Formula: Gross Pay - (Federal Tax + State Tax + Social Security + Medicare + Other Deductions)

Payroll Tax Rates (2024)

Frequently Asked Questions

What information do I need to calculate payroll? +

You need: Employee's gross pay, pay frequency, federal/state tax information, Social Security and Medicare rates, pre-tax and post-tax deductions, and any additional earnings or bonuses.

How do I calculate overtime pay? +

Overtime is typically calculated at 1.5 times the regular hourly rate for hours worked beyond 40 hours per week. Some states have different overtime rules, and some positions may be exempt from overtime.

What's the difference between gross pay and net pay? +

Gross pay is the total amount earned before any deductions. Net pay (take-home pay) is the amount the employee actually receives after all taxes and deductions have been subtracted from the gross pay.

How often should I run payroll? +

Common pay frequencies are weekly, bi-weekly (every two weeks), semi-monthly (twice a month), and monthly. The frequency depends on state laws, company policy, and employee agreements.

What are pre-tax vs. post-tax deductions? +

Pre-tax deductions (like 401(k) contributions and health insurance premiums) are subtracted from gross pay before taxes are calculated, reducing taxable income. Post-tax deductions are subtracted after taxes are calculated.

Payroll Best Practices

Keywords for Payroll Professionals

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