State and Local Taxes

This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,200 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.

"Section 125 Cafeteria Plan" expenses per pay period

The amounts that you wish to have deducted from your paycheck each pay period for your "Section 125 Cafeteria Plan". The expenses are broken down into four categories. All amounts you enter here are considered pre-tax deductions from your paycheck when you participate in your company's "Section 125 Cafeteria Plan". We consider all of these expenses to be ordinary after-tax expenses if you do not participate in your "Section 125 Cafeteria Plan" .

FICA OASDI

FICA Old Age Survivors and Disability Insurance. FICA OASDI is calculated as your gross earnings times 6.2%. Please note that this calculator does not make any assumptions as to the total FICA OASDI paid for the current year. For 2005, incomes over $90,000 that have already had the maximum FICA OASDI amount of $5580 withheld will not have additional FICA OASDI withholdings.

FICA Medicare

FICA Medicare is calculated as the gross earnings times 1.45%. Unlike FICA OASDI there is no annual limit to FICA Medicare deductions.

Federal tax withholding calculations

Federal income tax withholdings were calculated by:

1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
2. Subtracting the value of allowances allowed (for 2005, this is $3,200 multiplied by withholding allowances claimed).
3. Determining your annual tax by using the tables below (single and married rates, respectively).
4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.

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