Paycheck calculator?

Question

I went to paycheck city, or some website like that. It is supposed to calculate your net pay. It just seemed so low??? Anyone figure any different?

I live in Colorado. Single, claiming 2.

$35/hr,

36hr weeks

paid once a week.

I got 905 a week?? When the gross is 1260?? Ugh...

Answer 1

I ran your number and that is what I got too.  But that should be about right.  You are pulling down almost $70K per year and that puts you in the 25% tax bracket, meaning some of your money is taxed lower than that, but a lot of it is taxed at 25%.  And they are withholding $201 federal, which is about 16% so that is about right.  Throw in Soc Sec, Medicare and CO, and the government is getting well over $300 which all looks about right.

Answer 2

Sorry, that's modern life.  Take a look at your pay stub:

Figure:

14% Federal tax

7.5% Social Security

0.5% Medicare

That's 22% off the top.  I don't know if Colorado has a state tax.  Besides that, there is your share of the cost of your benefits, which may include health care, long/short term disability, life insurance, and possibly a 401k  or pension plan.

Answer 3

Does Colorado have a state income tax? Does the city you work in have a city income tax? Does the COUNTY have an income tax?

I live in a state that has ALL three and my deductions reduce my $750 weekly gross by more than $200 -- so you're about right as far as what you're bringing home.

There are other deductions like insurance, Medicare, Medicaid, union dues (if applicable), 401(k) payments -- never trust an online paycheck calculator == talk to your payroll person at work.

Answer 4

I calculate the following for you:

You make $65,520 gross per year

Your gross per week is $1,260

Your FICA (social security + medicare) per week is $96

Your Federal Taxes per week is $185

Your state taxes per week is $47

That leaves your net weekly paycheck at: $932, which is close the the $905 you are receiving.

(EDIT: I CORRECTED MY STATE TAX FIGURE... I FORGOT TO USE THE WEEKLY FIGURE)

I'm not taking into account any pre/post-tax deductions you have or how the government/your employer calculates your deductions based off your W-4 form.  Instead, I've actually created an Excel sheet that calculates your income, expenses, automatically calculates your taxes based on the filing status you choose (single, married etc) and the number of exemptions you have.  That is why my figures are slightly off yours.

If you are serious about my response, shoot me an email at [e-mail] and I'll send you that worksheet so you can run some scenarios.

Basically, you are making too much money for a single filing and you're being hit hard by federal taxes.  Is the person you are claiming under the age of 17 this year?  If so, you will get roughly an additional $1,000 back when you file your income taxes next year.