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Bankrate's 2009 Tax Guide
Calculators
We've added 11 new tax calculators to help make your tax preparations easier than ever!
 
Payroll deductions
401(k), 457 and 403(b) payroll deductions
Calculate how deductions change take-home pay


Use this payroll tax calculator to help you determine the impact of changing payroll deductions. Enter the current payroll information and deductions, then compare them to the proposed deductions. Try changing the withholdings, filing status or retirement savings and let the payroll tax calculator show the impact on take home pay. This payroll tax calculator has been updated to use the new withholding schedules for 2007.

   401(k), 457 and 403(b) payroll deductions

This Financial Calculator requires SUN's JavaT Plug-in. If you see this message you will need to download SUN's JavaT Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing "Install ActiveX Control".

    You can also get SUN's JavaT Plug-in here: Get the JavaT Plug-in!

    For more information about this Plug-in please visit: SUN's JavaT Plug-in
    For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions
Pay period: This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year) and Annually (one paycheck per year).
Gross pay: This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.
Filing status: This is your income tax filing status. The choices are "Single" and "Married." Choose "Married" if you are married or file as "head of household." Choose "Single" if you file your taxes as a single person or if you are married but file separately.
Number of allowances: When your federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the federal income tax withholding. In 2009, each allowance you claim is equal to $3,650 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from zero to 99 allowances.
401(k)/403(b) plan withholding: This is the percent of your gross income you put into a taxable deferred retirement account, such as a 401(k) or 403(b). While increasing your retirement account savings does lower your take home pay, it also lowers your federal income tax withholdings. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your 401(k) or 403(b) plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2009, the maximum contribution to a 401(k) or 403(b) is $16,500 per year for individuals under 50 and $22,000 for individuals 50 or older.
State and Local Taxes: This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,650 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.
Post-tax deductions: Enter any payroll deductions made by your employer that are made with after tax income.
Post-tax reimbursements: Enter any reimbursements made by your employer that are after tax.
FICA OASDI: FICA Old Age Survivors and Disability Insurance. FICA OASDI is calculated as your gross earnings times 6.2%. Please note that this calculator does not make any assumptions as to the total FICA OASDI paid for the current year. For 2009, incomes over $106,800 that have already had the maximum FICA OASDI amount of $6,621.60 withheld will not have additional FICA OASDI withholdings.
FICA Medicare: ICA Medicare is calculated as the gross earnings times 1.45%. Unlike FICA OASDI there is no annual limit to FICA Medicare deductions.
Federal tax withholding calculations: Federal income tax withholdings were calculated by:
  1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtracting the value of allowances allowed (for 2009, this is $3,650 multiplied by withholding allowances claimed).
  3. Determining your annual tax by using the tables below (single and married rates, respectively).
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.
Single Withholding Rates*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$0.00 $2,650.00 $0.00    
$2,650.00 $10,400.00 $0.00 10% $2,650.00
$10,400.00 $35,400.00 $775.00 15% $10,400.00
$35,400.00 $84,300.00 $4,525.00 25% $35,400
$84,300.00 $173,600.00 $16,750.00 28% $84,300.00
$173,600.00 $375,000.00 $41,754.00 33% $173,600.00
$375,000.00 (no limit) $108,216.00 35% $375,000.00
*This information is from IRS Publication 15, Rev. January 2009, for wages paid in 2009.


Married Withholding Rates*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$ 0.00 $ 8,000.00 $0.00    
$ 8,000.00 $ 23,950.00 $0.00 10% $ 8,000.00
$ 23,950.00 $75,650.00 $1,595.00 15% $ 23,950.00
$75,650.00 $144,800.00 $9,350.00 25% $75,650.00
$144,800.00 $216,600.00 $26,637.50 28% $144,800.00
$216,600.00 $380,700.00 $46,741.50 33% $216,600.00
$380,700.00 (no limit) $100,894.50 35% $380,700.00
*This information is from IRS Publication 15, Rev. January 2009, for wages paid in 2009.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


 



 
 
 
 
 
 
 
 
 
 
 
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