Calculation rules: Jan 1, 2026

Reference tool for payroll scenarios.

For documented determinations that fit your onboarding cycle (pre-hire, first payment, mid-year changes), use the Compliance Engines.

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TOOL #3: PAYROLL PLANNING

Perfect Net Payments

Need to give an employee exactly $5,000 in their pocket? Calculate the precise gross amount while accounting for FICA caps and supplemental rates.

Payment Details

The cash value the employee takes home.

OASDI Cap: $184,500

Take it from the employee’s latest pay stub or the payroll register, YTD gross column.

Bonuses and other supplemental pay already paid this calendar year. The part of this payment that takes the year past $1,000,000 is withheld at 37%, not 22%.

California splits by payment type: 10.23% on bonuses and stock options, 6.6% on other supplemental pay. NY 11.7%. Leave 0 for no state tax.

Total Gross Pay

$7,107.32

$2,107.32 in Total Taxes

Federal (22%)$1563.61
Social Security (6.2%)$440.65
Medicare (1.45%)$103.06
Net Pay$5,000
Keep this resultPayroll Pro

Saved runs live in your history.

Why accurate gross-ups matter

If you simply add estimated taxes on top of the net, you will underpay the tax liability because the taxes themselves are taxable income. The formula Net / (1 - TaxRate) ensures the math cycles correctly so the employee gets exactly the promised amount. When one payment crosses the Social Security wage base, $200,000 of wages (where the 0.9% Additional Medicare Tax starts) or $1,000,000 of supplemental pay (where the federal rate steps up to 37%), each stretch is solved at its own rate.

Standard Fed Rate
22%
Over $1M (Fed)
37%

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