Paycheck Calculator in Excel, OpenOffice Calc, & Google Sheets to calculate in hand paycheck after W-4, deductions, state tax, allowance, etc.
In addition to the above, it includes deductions like social security, medicare, health insurance premiums, voluntary 401k deductions, federal withholding tax, state income tax, as well as pre-tax and post-tax deductions. Thus, it provides a detailed summary of your paycheck.
Insert monthly gross pay, select pay period, select filing status, and applicable information. The template will automatically calculate the rest take-home paycheck amount for you.
This template is helpful for HR professionals, admin staff as well as employers to calculate the withholding tax on the paycheck. It calculates the paycheck amount based on information submitted by the employee on the W-4 form.
Download Paycheck Calculator Template As Per The W-4 Form (Excel, OpenOffice Calc & Google Sheet)
Click on the button below to download your desired file format of Paycheck Calculator:
Components of Paycheck Calculator Excel Template
Paycheck Calculator Template consists of 6 sections: Gross pay Calculation, W-4 Form information, Pre-Tax Adjustments, Federal Withholding Tax Calculations, Post Tax Adjustments, and Paycheck Deduction Summary.
Let us understand each section in detail.
Gross Pay Calculations
This section consists of the following:
Pay Periods Per Year
Annual Gross Pay
Enter the gross pay of the employee and select the pay period from the dropdown list. The template calculates annual gross pay and pay periods per year automatically.
Gross pay is the salary before deductions. Insert the gross pay based on the pay period.
The pay period is the frequency is the nature of the payment. It can be monthly, weekly, biweekly, semimonthly, and, daily. Moreover, based on the pay period selection, it displays the Pay Periods Per Year automatically.
52 for weekly, 12 for monthly, 26 for biweekly, 24 for semimonthly, and 26 for daily.
The template derives Annual gross pay by multiplying the gross pay with the number of pay periods. Hence the formula applied here is:
Gross Annual Pay = Gross Pay X Pay Periods Per Year
For example, if your gross pay is $8,000 and payment is monthly, then $8,000 X 12 = $96,000 will be his annual salary.
W-4 Form Information
To calculate the paycheck amount, it is necessary to derive some information from the Federal Withholding Form W-4. The deductions of withholding tax from the salary need to be calculated based on the information submitted by the employee in W-4 Form.
This section consists of the following details:
Form W4 2(c) Checked
Other Income from Step 4(a)
Extra Withholding 4(c)
Based on the above information and 2021 Withholding Tax Tables, the withholding tax deductions are calculated. Hence, it is necessary to enter this information. It can be left blank only if the employee is exempt from withholding tax deductions.
An employee can claim exemption from withholding for 2021 if they meet both of the following conditions:
1. They have no federal income tax liability in 2020.
2. They expect to have no federal income tax liability in 2021.
Important Note: Please fill in the information according to the W-4 form submitted to your employer or else the paycheck amount may vary.
This section includes the pre-tax adjustments that are not included in Step 4(b) of your W-4 form. It includes the following:
401(k) Tax Deferral Plan Percentage
401(k) Tax Deferral Plan Amount
Health Insurance Premium
Total Pre Tax Dedcutions
Adjusted Gross Pay Monthly
Adjusted Annual Gross Pay
Insert the percentage of 401(k) plan. It calculates the 401(k) deduction amount based on gross salary. For example, if the salary is $8,000 and your 401(k) plan is 10%, it will be $800.
Enter the actual amount of health insurance premium and other relevant deductions applicable. This will calculate the total pre-tax deductions from your gross pay.
Thus, the template deducts it from your gross pay and you can derive your monthly and annual adjusted gross pay. Now, the template calculates the Federal Withholding Tax based on this adjusted gross pay in the following section.
Federal Withholding Tax Calculations
This section consists of predefined formula and is auto-populated. Hence, based on the above calculations and the 2021 Withholding Tax Table, the template automatically calculated the withholding tax.
It consists of the following details:
Federal Withholding Tax Table
Minimum Base Withholding
% Rate Applicable Above Threshold
Gross Annual Witholding Amount
Net Annual Withodling Amount
Net Monthly Withodling Amount
Based on the Adjusted Gross Pay calculations and the selection of Step 2(c) on Form W-4 the template defines Tax Table Applicability, Withholding Threshold, Minimum Base WIthholding, and percentage rate of income above the threshold.
In the end, the section calculates the Gross Annual Withholding Amount based on the above table applicability. The Tax Tables are given below for better understanding. Kindly, scroll to the end to view the 2021 Withholding Tax Tables.
The Dependent Claim is deducted from this amount to derive the Net Annual Withholding Amount.
Furthermore, the Annual Withholding Amount is divided by the Pay period per year to get Net Monthly Withholding Amount.
This section is applicable if you have other post-tax adjustments such as State & Local Taxes, other deductions, or reimbursements. If not then leave this section blank.
Conclusively, based on calculations in all the above sections, the template prepares the Paycheck Summary. This section also consists of predefined formulas.
Thus, it is auto-populated except for the percentage of Social Security and Medicare which is applicable to everyone. Currently, the rate in 2021 is 6.20% for FICA Social Security and 1.45% for FICA Medicare.
This section consists of the following:
Gross Pay Amount
Net Monthly Withodling Amount
FICA Social Security
Health Insurance Premiums
State & Local Taxes
Net Paycheck Amount
Applying the following formula, the template derives the Net Paycheck Amount.
2021 Withholding Tax Tables – Percentage Method Tables For Automated Payroll Systems
The IRS provides the tables for calculating the withholding tax. The tables are given below for your ready reference.
Standard Withholding Rate Schedules
This table is used for people who have not checked Step 2(c) of the W-4 form. We have adjusted the figures in these tables based on the following circular:
$12,900 is added to the withholding threshold limit for married filing jointly and $8,600 has been added to the withholding threshold for Single, Married Filing Separately and Head of Household.
Withholding Rate Schedules Form W-4, Step 2(c) Checked
The following table has no adjustment and is similar to the one published on the IRS website.
Click the link below:
- Form W-4, Employee’s Withholding Certificate
- Income Tax Withholding Assistant Spreadsheet
- Publication 15-T (2021), Federal Income Tax Withholding Methods
- Tax Withholding Estimator FAQs Answered By IRS
- Tax Withholding for Individuals
Frequently Asked Questions
What is the rate of FICA social Security Tax rate and FICA Medicare Tax rate?
According to the Topic No. 751 Social Security and Medicare Withholding Rates on the IRS website:
"The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15, (Circular E), Employer's Tax Guide for more information; or Publication 51, (Circular A), Agricultural Employer’s Tax Guide for agricultural employers. Refer to Notice 2020-65 and Notice 2021-11 for information allowing employers to defer withholding and payment of the employee's share of Social Security taxes of certain employees."
What is W-4 Form?
The W-4 Form the Employee Withholding Certificate that an employee completes to let his/her employer know how much tax to withhold from the paycheck for federal taxes. Accurately completing and filing this form reduces the burden of huge tax bills at tax time.
What is 401(k) Plan?
401(k) Plan is a retirement saving plan that provides tax advantages to the plan holder. The money is set aside for retirement and is deductible from your current taxable income. Under this plan, an employee opts for 401(k) and defines deduction of a specific percentage from his paycheck which the employer pays directly into an investment account.
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