1. What is Net Salary?

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

2. How Does the Calculator Work?

The calculator uses the net salary formula:

Where:

• Gross Salary — Total earnings before any deductions
• Federal Tax — Federal income tax withholding
• State Tax — State income tax withholding
• FICA — Social Security and Medicare taxes

Explanation: This formula calculates the actual amount you receive in your paycheck after mandatory tax deductions.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with personal budgeting, financial planning, and evaluating job offers or salary changes.

4. Using the Calculator

Tips: Enter your gross salary and all tax amounts in dollars. 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 deduction total.

Q3: How often should I calculate my net salary?
A: It's good practice to calculate it whenever your salary changes or tax laws are updated.

Q4: Why is my net salary lower than expected?
A: This could be due to additional withholdings, benefits deductions, or higher-than-expected tax rates.

Q5: Can I use this for hourly wages?
A: Yes, but you'll need to calculate your gross salary first (hours worked × hourly rate) before using this calculator.