When you look at your paycheck, two line items you’ll almost always see are Social Security and Medicare taxes. These are part of the FICA tax system (Federal Insurance Contributions Act). Knowing how to calculate them makes it easier to understand your true take-home pay.Before negotiating a job offer, calculate your take-home pay to understand…
If you’re looking at your paycheck and wondering how much federal tax is being taken out in 2025, the answer depends on your income, filing status, pay frequency, and the information you provided on your W-4. There isn’t one flat percentage for everyone—federal tax withholding is based on IRS tax brackets and your personal situation….
When you get your paycheck, you’ll always see “FICA” listed among the deductions. These payroll taxes fund Social Security and Medicare, and every employee pays them. Knowing how to calculate FICA yourself helps you understand exactly how much is taken out of each check and why. What Are FICA Taxes? FICA stands for the Federal…
When you decide to contribute to a 401(k), one of the first questions that comes up is: How much will this reduce my paycheck? The answer depends on your gross pay, your contribution percentage, and how federal, state, and payroll taxes are applied. This guide breaks it down step by step with clear examples so…
Being self-employed has clear advantages: freedom, flexibility, and control over your work. But it also comes with a big question—how much do you really take home after taxes and expenses? Unlike W-2 employees who see withholdings automatically on their paycheck, freelancers and small business owners are responsible for calculating their own net pay. Your true…
Balancing multiple jobs is becoming more common, whether it’s combining two part-time roles, freelancing alongside a full-time position, or picking up extra shifts to boost income. But when your earnings come from more than one employer, calculating your paycheck isn’t as straightforward as adding them together. Each employer withholds taxes separately, which can leave you…
Working extra hours can give your paycheck a healthy boost, but the math isn’t always simple. Overtime pay is usually calculated at one-and-a-half times your regular hourly rate, and in some cases, even double time. Once you add those extra earnings, your gross pay rises—but so do your taxes and deductions. If you’ve ever wondered,…
Your salary on paper is never the same as the amount that shows up in your bank account. That’s because what you earn—your gross salary—gets reduced by taxes and deductions before you receive it as net pay. Social Security, Medicare, federal withholding, state taxes, retirement contributions, and health insurance all play a part in lowering…
When you see your salary on paper, it looks straightforward. But once taxes and deductions are taken out, your actual paycheck is smaller. Social Security, Medicare, federal withholding, state tax, retirement contributions, and health insurance all shape your take-home pay. Understanding each step helps you budget better and plan ahead. Step 1 — Start with…
Most people know their salary, but few know exactly how much of it ends up in their bank account after taxes and deductions. Your paycheck is shaped by several layers: Social Security, Medicare, federal income tax, and often state or local taxes. Add in retirement contributions or health insurance, and the numbers can get confusing…