Hourly Paycheck Calculator US Federal

How this Hourly Paycheck Calculator works

Start with gross hourly pay, apply pre-tax adjustments, withhold FICA and federal income tax, then subtract post-tax items.

Step-by-step calculation (semantic triples)

Gross pay → is calculated as hourly rate × hours + overtime premiums.
Taxable wages → equal gross pay − pre-tax contributions (401(k), HSA, FSA).
FICA withheld → equals Social Security + Medicare on taxable wages (see FICA rules).
Federal withholding → uses Form W-4 elections and IRS wage-bracket/percentage methods.
Net pay → equals taxable wages − FICA − federal withholding − post-tax deductions.

US federal payroll taxes and payroll entities

These are the federal payroll entities the calculator models: FIT (federal income tax), FICA (Social Security and Medicare), and FUTA (employer unemployment tax).

Key federal tax entities and attributes

Federal income tax (FIT): withheld per Form W-4 settings and IRS tables.
FICA: Social Security and Medicare; attribute values include rates and caps below.
FUTA: employer-paid federal unemployment tax; employees do not pay FUTA.
Pre-tax deductions: reduce FIT-taxable wages; may affect FICA depending on plan type.
Post-tax deductions: Roth contributions, garnishments, union dues; they reduce net pay only.

Federal Unemployment (FUTA) — 2016–2025 (reference)

Employees do not pay federal unemployment. Employers pay FUTA on a wage base, often reduced by state credits.

Employer FUTA statutory rate and typical net rate after state credit.
Year	Employee UI/FUTA Rate	Employee Pays?	Employer FUTA Taxable Wage Base	Statutory FUTA Rate	Typical Net FUTA After Credit
2016	0%	No	$7,000	6.0%	~0.6%*
2017	0%	No	$7,000	6.0%	~0.6%*
2018	0%	No	$7,000	6.0%	~0.6%*
2019	0%	No	$7,000	6.0%	~0.6%*
2020	0%	No	$7,000	6.0%	~0.6%*
2021	0%	No	$7,000	6.0%	Varies by credit*
2022	0%	No	$7,000	6.0%	Varies by credit*
2023	0%	No	$7,000	6.0%	Varies by credit*
2024	0%	No	$7,000	6.0%	Varies by credit*
2025	0%	No	$7,000	6.0%	Varies by credit*

*Net FUTA is commonly ~0.6% when the full state credit is available; credit-reduction states have higher net rates.

Hourly threshold and overtime rules (FLSA)

Most hourly workers are non-exempt under the FLSA. They earn overtime after 40 hours per week.

Overtime pay equals 1.5× the regular rate for non-exempt employees. Salary thresholds apply to exemptions, not to hourly status alone.

Median Household Income — United States (nominal)

Illustrative trend. Verify with the latest U.S. Census or ACS for official values.

Year	Median Household Income (U.S.)
2015	$57,000
2016	$59,000
2017	$61,400
2018	$63,200
2019	$68,700
2020	$67,500
2021	$70,800
2022	$74,600
2023	$76,300
2024	$77,900

Federal Insurance Contributions Act (FICA) — Social Security & Medicare

Social Security: 6.2% employee + 6.2% employer, to the annual wage base.
Medicare: 1.45% employee + 1.45% employer, on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000.

Tip: Social Security has an annual wage cap. Once you hit it, Social Security withholding stops for the year. Medicare continues on all wages.

Local income taxes and city wage taxes

Some cities and municipalities impose wage or local income taxes. Employers withhold when required by jurisdiction rules.

Example local tax rates (illustrative)

City/Municipality	Typical Employee Rate	Notes
New York City, NY	~3%–4%	City resident income tax in addition to NY State tax
Philadelphia, PA	~3%–4%	Wage tax applies to residents and nonresidents at different rates
Detroit, MI	~1%–2.4%	Resident/nonresident rate differences
Columbus/Cleveland (OH)	~1%–3%	Many Ohio cities levy municipal income taxes
Dozens of PA boroughs	~0.5%–2%	Local Earned Income Taxes vary by municipality/school district

Wage and hour rules employers must follow

Overtime: 1.5× regular rate after 40 hours per week for non-exempt workers.
Minimum wage: Federal floor applies unless state or local rates are higher.
Pay frequency: States set payday rules; FLSA does not prescribe frequency.
Recordkeeping: Employers must maintain accurate time and payroll records for non-exempt employees.

Common federal payroll forms

Form W-4 — Employee’s Withholding Certificate (sets federal FIT withholding).
Form I-9 — Employment Eligibility Verification.
Form W-2 — Wage and Tax Statement (annual employee report).
Forms 941 / 944 — Employer’s federal tax returns for withholding and FICA.
Form 940 — Employer’s Annual FUTA Return.
Form 1099-NEC — Nonemployee compensation for contractors (not payroll).

FAQs — Hourly Paycheck Calculator (US Federal)

How do I use this calculator?

Enter rate, hours, frequency, W-4, and deductions. Run the calculation to see per-pay and annual net pay.

How should I enter overtime hours?

List overtime hours separately at 1.5× the regular rate. The calculator recomputes taxes on the higher gross.

Does the calculator handle multiple jobs?

Yes. Run separate scenarios per job, then combine annualized results for a consolidated view.

How are bonuses and commissions handled?

Enter them as supplemental wages. Choose flat supplemental withholding or aggregate methods if available.

What if I contribute to a 401(k), HSA, or FSA?

Enter pre-tax amounts so FIT (and sometimes FICA) taxable wages fall. Roth contributions remain post-tax.

Why did my net pay increase near year-end?

You may have hit the Social Security wage base, stopping Social Security withholding for the remainder of the year.

Can I add extra federal withholding each paycheck?

Yes. Use Form W-4 to request a flat extra amount per paycheck and enter it into the calculator.

Does this include state and local taxes?

By default, the calculator models federal items. Add state or local tax fields if your tool supports them.

How do tips affect withholding?

Reported tips are taxable for FIT and FICA. Include tips to avoid under-withholding.

Can students be exempt from FICA?

Some student workers at qualifying institutions can be FICA-exempt while enrolled at least half-time. If exempt, exclude FICA for that job.