In the United States, calculate a monthly salary after taxes by subtracting the net monthly salary from the gross monthly salary. Deductions can include federal withholding taxes, FICA or social security and other possible deductions, such as contributions to an IRA. While some optional deductions, like insurance, are not required of all workers in the United States, they can still be included when calculating the net salary from the gross salary.
Continue ReadingIt should be noted that the amount each worker pays in taxes, FICA, retirement, insurance and other possible deductions, some of which are optional, can vary depending on the level of income, marital status and other individual factors.
Gross pay is the known yearly salary before taxes, or it can be calculated by multiplying the hourly rate by the number of hours worked.
Required federal deductions for most workers in the United States include Social Security, Medicare and standard income taxes, as well as other possibilities.
Once the total yearly deductions are determined, they can be subtracted from the gross yearly salary. The result is the net yearly salary. To find the monthly net salary, divide the net yearly salary by 12. If the desired result is to calculate the monthly salary after taxes but before other optional deductions are taken out, they can simply be omitted from the total deduction amount.