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Calculate Monthly Salary After Tax

Salary Formula:

\[ \text{Net Salary} = \text{Gross Salary} - (\text{Federal Tax} + \text{State Tax} + \text{FICA}) \]

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1. What is Net Salary?

Net salary, often called take-home pay, is the amount of money you receive after all deductions (taxes, insurance, retirement contributions, etc.) have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ \text{Net Salary} = \text{Gross Salary} - (\text{Federal Tax} + \text{State Tax} + \text{FICA}) \]

Where:

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with budgeting, financial planning, and ensuring you're being taxed correctly. It shows your actual disposable income.

4. Using the Calculator

Tips: Enter all amounts in dollars. For monthly calculations, use monthly figures. For annual calculations, use annual figures. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary is what you actually take home after all deductions.

Q2: Are all deductions included in this calculation?
A: This calculator includes major tax deductions. Other deductions (retirement, insurance, etc.) would need to be added to the tax amounts for complete accuracy.

Q3: How can I estimate my tax withholdings?
A: Use IRS withholding calculator or your last pay stub as reference. Tax amounts vary based on income, filing status, and allowances.

Q4: Is FICA the same for everyone?
A: FICA is typically 7.65% (6.2% Social Security + 1.45% Medicare) up to the Social Security wage base. High earners pay an additional 0.9% Medicare tax.

Q5: Why is my net pay different from this calculation?
A: This is a simplified calculation. Actual paychecks may include other deductions like health insurance, retirement contributions, or wage garnishments.

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