A salary offer is usually a gross annual number. A paycheck is what remains after pay frequency, pre-tax deductions, federal income tax, FICA and any state or local taxes are applied.
This guide explains a simplified planning flow. It does not replace an employer payroll system, Form W-4, IRS guidance, a tax return or advice from a qualified professional.
Start from gross pay per paycheck
Annual salary is first divided by pay frequency. A $78,000 salary is not paid as one number; it might become 26 biweekly checks, 24 semi-monthly checks or 12 monthly checks before deductions.
Pre-tax deductions such as a traditional 401(k), health insurance premiums or certain benefit contributions can reduce the amount used for some tax calculations. The exact treatment depends on the plan and payroll setup.
Federal tax and FICA are different items
Federal income tax is estimated from taxable income and filing status. Social Security and Medicare taxes are FICA payroll taxes and use their own rates and wage-base rules.
A common mistake is to apply one flat tax rate to the whole salary. In practice, federal income tax is progressive, while FICA and state or local taxes may use different bases.
Examples that often change the result
Example 1: A single employee earning $60,000 with a 401(k) deduction may see lower federal taxable wages than another employee with the same salary and no pre-tax deduction.
Example 2: A married employee earning $95,000 may have a different federal estimate from a single employee with the same salary because the filing status and standard deduction differ.
Example 3: A state or city tax can be the reason two workers with the same salary and federal status receive different take-home pay.
Included and excluded items
- Included: Annual salary or gross pay, Pay frequency, Filing status, Pre-tax deduction estimate, Federal tax estimate, Social Security and Medicare planning rates, State or local planning rate when entered
- Not included: Complete Form W-4 step-by-step withholding, Child tax credit and other credits, Local paid leave or disability taxes, Additional Medicare tax and employer-only costs, Actual benefits enrollment rules
- Check before relying on the result: Your employer payroll settings, Latest IRS publications, State and local revenue department rules, A tax professional before filing or making payroll decisions