Does anyone understand how to translate gross income into net? For example, if I were earning $75K per year (paid monthly) and placing 6% into a 401k, 1.5% into a city tax and another $200 into insurance, what calculation(s) will bring me to net income? I know that 401k contributions are pre-tax, social security is 6.2% and medicare another 1.45%. That being said, does 401k come out before or after SS and medicare?
Ultimately, I'd like to set up a spreadsheet that can run this calculation.
2007-10-28 15:21:24 · 2 answers · asked by marko 1 in Business & Finance ➔ Personal Finance
it should be just total earnings - total expenses (i.e tax)
2007-10-28 15:26:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp
Social Security and medicare are calculated on Gross Pay (before 401k funds are taken out)
2007-10-28 15:55:35 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋