How to Calculate Payroll Taxes Online
Payroll taxes can be difficult to calculate. To compute them appropriately, you must know which ones apply and the rates associated with each one. The amount of federal income tax an employee pays depends on his filing status, allowances and the IRS' withholding tax tables. His state income tax depends on whether his state charges this tax. If so, it depends his state tax form data and his state's withholding tax tables. Social Security and Medicare tax depends solely on the rate the government regulates. To lessen the burden of calculating these taxes yourself, you may use an online source.
Other People Are Reading
Instructions
-
-
1
Use an online paycheck calculator. For instance, Paycheckcity has salary and hourly calculators, which calculates payroll taxes at no cost. Input the gross pay, voluntary deductions, filing status, federal and state tax information. The calculator will calculate the payroll taxes and provide the net pay.
-
2
Use an online payroll service company. Payroll companies such as Intuit and Paycheck Manager allow you to process your entire payroll online; this service includes payroll tax calculation. These companies also offer free trials, which allow you to process your payroll free for a limited time.
-
-
3
Use a payroll software company. Payroll software companies, such as PenSoft allow you to purchase and download the software to your computer and use it to process your payroll on an ongoing basis. If you only need to calculate payroll taxes online, use the company's free online calculator.
-
1
Tips & Warnings
The employee can use the IRS withholding calculator to know if he should give his employer a new Form W-4. Based on his expected salary for the year, taxes withheld for the prior year, pay frequency, filing status and allowances, the calculator provides his anticipated income tax for the current year.
References
Resources
- Photo Credit dollari image by Rido from Fotolia.com
