Knowing what your hourly paycheck will be (especially when starting a new job) can be incredibly helpful in deciding if you can live on the wages being offered to you. You can also use the calculator to work out how much money you will receive each month, giving you a way to budget. If you are asking a for a pay rise, this will help you to work out how much of a boost this will offer.
How to calculate your pay
You need to know a few basic figures when you are using the free paycheck calculator. These include the number of hours you will be working, the hourly rate you have been offered, the allowances you qualify for, your taxation rate and the benefits you might receive. Once all of these are taken into account you can work out your hourly rate, your monthly rate and even the amount you might get across the entire year. This will also show the tax you will pay.
This service offers you the chance to set your budget in advance of starting a new job, to decide on whether a job suits you in a financial sense and if you will need to ask for a pay rise.
Things that may influence your hourly paycheck
Taxes: There are various federal taxes and state taxes that will be taken from your income by your employer. These are not negotiable and can impact on your hourly rate by as much as 25% or more depending on the level of taxation your income determines. These taxes cover things like healthcare, insurances and social security.
Other deductions: these may include any money that is owed to the tax department that is taken at source. Other deductions might include student loans or other money owed. It is important to take these into account before making your decision based on these hourly rates.
Pensions: you may choose to allow your employer to enroll you in a pension plan, such as 401 (k) or 403 (b), with a percentage of money taken from your wages. This will allow you to save for your retirement easily but will impact your hourly paycheck.
How will my paycheck be paid?
You may receive your payments on a daily, weekly, fortnightly or monthly basis. Our calculator will work all of these out based on your circumstances, while any overtime is added in. Even your bonus can be included to give you a fuller picture of your financial status. Usually, your money is paid directly into your bank account, but some employers offer a cash or even check payment of your hourly wages.
Knowing exactly how much money you will receive each week or month will greatly help you to budget for your future and to ensure you don’t find yourself in financial hardship. This calculator will let you know if you can afford to take on your new role or if you need to find one with a better hourly paycheck.
Using the hourly paycheck calculator
There are two parts to the hourly paycheck calculator: the information section and the report section. You will need to add information about your potential income to the calculator for an accurate report to be generated. We can go through this step by step.
The first part of the hourly paycheck calculator will ask you for general details about your tax status. This includes your filing status (whether you are married or single), the pay period, which could be weekly, fortnightly or monthly, the number of allowances you are entitled to, whether you have tax withheld for a 401K or 403 B plan and at what percentage, the state and local taxes for your area, any other pre-tax deductions or post tax deductions and reimbursements.
You may not know all of these details right away, but a simple online search should come up with the answers for your area. You can, however, leave the fields blank if you are unsure. But it will affect the accuracy of your report.
The second part is where you insert information about your wages and the hours worked. This will include the regular hours and the hourly rate, any overtime you may do and at what hourly rate that is paid, plus any other work that you may do in addition to this and the rate of pay given for those hours. The system will then generate a simple estimation of your gross paycheck for the specified time period.
This paycheck estimation is then broken down into two reports. The first is an estimation of net paycheck pie chart to offer a visual representation of how your pay is distributed. This will show the percentage of pay that goes towards certain taxes, any health insurance contributions, pension payments and other deductions - giving you a clear idea of how much is left for you. This is your net pay.
The second tab allows you to see a breakdown of the paycheck summary with all of the details that you have already added. This will allow you to compare different levels of pay, see how much tax you will incur and to decide what level of pay you will require to meet your expenses. It may clearly show that you will need to do a certain number of overtime hours to meet your commitments, or that you are better off staying in your current job.
Without this essential information, you will never know if leaving your job and finding a new one will be financially responsible or a drain on your finances.