How to Calculate Your Payroll Free
Employers perform payroll processing to pay employees for services rendered. If you have few employees, you can use a manual payroll system to calculate your payroll. This system requires you to perform wage and deduction calculations by hand; it is less expensive to set up than an in-house computerized system, which uses payroll software to process the payroll. To reduce manual calculations and increase paycheck accuracy, you can use a free online paycheck calculator to calculate your payroll.
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Instructions
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Go to PaycheckCity.com and sign up for a free registration, if you want to print the paycheck stub information.
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Select the hourly or salary calculator. Choose the tax year, state of employment, pay rate and hours or salary. The calculator automatically calculates the gross earnings.
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Select the pay frequency, such as weekly or biweekly. Enter the employee's federal income tax withholding conditions, such as filing status, number of allowances and additional tax to be withheld. See the employee's W-4 form for this information, if necessary. Enter state, city or local income tax data, such as additional tax to be withheld and number of exemptions. The calculator automatically calculates Medicare and Social Security taxes at their respective flat percentages; therefore, you do not have to key in the rates. Check the appropriate boxes if the employee is exempt from taxes.
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Enter voluntary deductions, such as medical, dental or 401(k), and the respective amounts. If the deduction is pretax, such as a traditional 401(k) plan, check the tax that it is exempt from. Pretax deductions are generally exempt from federal income tax, Social Security tax and Medicare tax. State laws vary; check with your state revenue agency to know which pretax deductions are exempt from state, city or local income tax.
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Press "Calculate" to figure the paycheck. The calculator shows you the employee's gross-to-net earnings and the conditions the calculation is based on. If you signed up for a free registration, you can print the pay stub.
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Tips & Warnings
You can use other free online paycheck calculators, such as Paycheck Manager, Intuit Online Payroll and SurePayroll, to calculate your payroll. The procedures may vary, but many calculators have similar features.
If you want to outsource your payroll duties to a payroll service provider, you have to pay a fee. However, many providers offer a free trial as an incentive to new clients.
References
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