Many local job advertisements offer an hourly wage, but this is not the actual amount of money that you will take home after performing this job. Payroll checks are issued after taxes and deductions have been taken out of a salary. The final amount calculated after removing all of the relevant taxes is known as the net salary. Perform some straightforward calculations to find out the actual net salary of your next job or the one that you currently hold.
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Things you need
- Tax tables
Multiply your hourly wage by the number of hours you work in a week. If you work overtime every week, add in the overtime hours by multiplying the number of hours over 40 that you worked by 1/2 of your hourly wage and adding that figure to the first one that you calculated. This final total is your gross weekly wage.
Look on the federal tax tables and find out the tax rate for your particular circumstances. Your tax rate percentage will vary depending on whether you are single or married and how many deductions that you claim. Multiply your tax rate by your gross weekly wage. This figure is your federal tax.
Find your state income tax rate, if your state has an income tax in place. This rate will be on the tax tables found on your state's website, or you may be able to call your city government and access that information. Multiply your state income tax rate by your gross weekly pay. This figure is your state tax.
If you are subject to a local tax for the city in which you work, multiply this rate by your gross weekly pay to figure out your city tax.
Multiply your gross weekly pay by 7.65. This is the amount deducted each pay period for Social Security and Medicare. This figure is your FICA (Federal Insurance Contributions Act) total.
Add together your federal tax, your state tax, your city tax and your FICA total. Subtract this amount from your gross weekly pay. This total is your net weekly pay.
Multiply your net weekly pay by 52. This final figure is your net yearly salary.
Tips and warnings
- If you are subject to withholdings from garnishment of your wages, insurance or voluntary retirement deposits, subtract these amounts from the net weekly pay to get an accurate net salary.
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