Whether you’re running a two-person operation or a growing food truck fleet, you know payroll is more complicated than giving each employee their exact amount earned each pay period. Instead, as an employer, you have to withhold taxes from each employee’s paycheck. Withholdings might also include premiums for your business’s vision, dental, and medical insurance plans; wage garnishments; or voluntary donations.
But how can you figure out how much should be deducted from each paycheck? A payroll (or paycheck) calculator is a tool that calculates tax withholdings and other deductions from an employee’s gross pay— which makes it easier to give your employees the right net pay at the end of the pay period. Thanks to their tax accuracy, paycheck calculators can also relieve some of the stress we all associate with tax season.
Payroll calculators for employers are tailored to all sorts of employee situations. There are hourly and salary payroll calculators, weekly and bi-weekly paycheck calculators, or even calculators that ensure you give your 1099 (or freelance) employees the right gross pay.
You can find a free payroll calculator online or use the calculator included with your small business’s accounting or payroll software.