To use a net salary calculator, input the tax year, the state where you work, general pay information and voluntary deductions, explains ADP. This type of calculator is for individuals to calculate take home pay, and is not for payroll departments to calculate exact deductions.Continue Reading
Enter the tax year at the top of the calculator to set the withholding formula according to the year, reports ADP. Next, enter your state of residence to automatically calculate state deductions from the gross pay. Enter additional state and local tax information if it appears on the form.
Next, fill out the general information section. Enter your gross pay; pay frequency; filing status; and information on whether you are exempt from federal, FICA or Medicare taxes. If you have additional federal or state taxes withheld from your pay, enter those dollar amounts as well.
Enter voluntary deductions, such as contributions to retirement accounts or payments for health insurance, in the last section of the form, states ADP. Also indicate whether such deductions are exempt from federal, FICA, state and local taxes. For example, cafeteria plans and retirement accounts are exempt from some taxes.
Make certain all the items are correct. Then hit the calculate button to see your approximate take-home pay for each period, reports ADP.Learn more about Financial Calculations