1. Find your pay period: weekly, biweekly, semi-monthly, monthly or daily
2. Find your gross income for each paycheck
3. Add up your income exemptions for each paycheck
4. Add up your pretax deductions, including 401K, flexible account contributions ... for each paycheck
5. Figure out your taxable income for each paycheck
taxable income = gross pay - exemptions - pretax deductions
6. Find the tax rate you should use and calculate the federal income tax
7. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.
You can also find step by step guide on how to calculate federal income tax manually here.
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EzPaycheck Makes Your Payroll an Easy Job!
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