Payroll Calculators will quickly calculate deductions, taxes, and pay for your paychecks. Explore how the payroll calculators can help make taxes a breeze and employee wages a no-brainer.
As a small business owner, we are guessing that running payroll wasn’t the first thought you had when deciding to launch into business on your own. You were likely focusing on building a business you’re passionate about, finding the right location for it, and other tasks that weren’t payroll related. But payroll is a necessity, and getting it right is important. This article will help you get a handle on how to calculate payroll correctly, and includes some payroll calculators to help you out.
First, let’s get the lay of the land, and understand everything that goes into calculating payroll, whether you’re a sole proprietor and are paying yourself, or if you need to run payroll for numerous employees.
Federal taxes: Federal taxes are the taxes withheld from your paycheck that benefit the federal government. Most commonly these taxes include government programs such as Medicare / Medicaid and Social Security. Other taxes you will likely see included are income tax, gift tax, estate tax, and employment taxes.
State taxes: In addition to federal income tax, most U.S. states collect a state income tax from employees. You will want to be sure of the state income tax rules in your state because some states have flat tax rates, some have graduated tax rates, and seven states have no income tax at all.
Local taxes: Local taxes will be decided by a state, county or municipality. These taxes are used to fund various civic services with garbage collection or sewer maintenance as examples. These taxes can vary drastically based on jurisdiction.
In the United States—the world’s largest economy—wealth is more than money. It is status, security, freedom, and in many ways, identity. From the rags-to-riches myths of the Gilded Age to the tech billionaires of Silicon Valley, America has always been fascinated by those who amass fortunes beyond imagination.
