Monday, September 27, 2010

Paycheck Calculator - Indispensable Economic Tool

paycheck calculator
Do you know what your withholdings should be? Are you sure that you pay the right amount of money to taxes? Well, paycheck calculator will help you. It's a very useful economic tool that calculates an individual's net pay. Using this calculator you will be knowledgeable about the essential amount of earnings after taxes have been withheld.

What Is the Main Function?

If you are interested in calculating the deductions, including taxes, hourly paycheck calculator is just what you need. You are an employee that works for the government or you are a salaried individual or, maybe, you are a businessman. It doesn't matter. This economic tool will calculate your earnings according to the information you perform. There is a variety of paycheck calculators offering different range of functions.

The Main Types of Paycheck Calculators

There are two main types of calculators, one that uses supplemental tax rates to determine withholdings on particular earnings such as bonuses (the so-called percentage method), and another that uses an individual's previous paycheck in order to apply the right withholding rates for particular earnings (aggregate method). Besides these two bonus calculators there are also four additional tax tools, such as withholding calculator, Earned Income Credit (EIC) Assistant, Alternative Minimum Tax (AMT) Assistant and paycheck calculator which help to supply you with all necessary information about your tax rates and withholdings.

- Withholding calculator will help you to make sure that you are not withholding too much or too little from your paycheck. This tool will be useful when you change a job and have your salary cut or increase, when you get a raise, sell or buy a house or even when you are going to expand your family.

- Earned Income Credit (EIC) Assistant will be helpful in determining if you are eligible for EIC when you file your taxes and estimate a credit in accordance to the information you perform.

- Alternative Minimm Tax (AMT) Assistant will be useful if you are a subject to the AMT and you are interested in determining your personal responsibility.

- Free paycheck calculator will make you sure that the calculations on your paycheck are fulfiled accurately with no mistakes and it will also help you to estimate your "bring home" pay when you start a new job.

So, if you really care about your taxes and withholdings, if you don't want to pay more than you should, use paycheck calculator and feel confident that you won't be cheated.


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