How the paycheck calculator will help you
For those of us who are curious about estimating our take home pay then this paycheck calculator is the ultimate solution. Without equal, this calculator is all meat and no fillers and provides a quality estimate of what you could expect to bring to the table come payday. Based on my requirements for knowledge in the past I have designed this calculator to highlight your net pay across multiple frequency platforms (eg. Hourly, Daily, Weekly, Monthly, Quarterly and Annually), which is an apparent limitation in all the current calculators available.
Aside from the built-in ability to select key optional functions such as whether you are including Superannuation in your gross income or whether you are claiming the tax-free threshold, or whether you have a HELP (Higher Education Loan Program) / TSL (Trade Support Loan) debt, or whether you are considered a foreign resident for tax purposes or whether you will be providing a TFN (Tax File Number) in the calculation, there is the more powerful ability centered around the pay and pay frequency functions. Probably the limitation in all available calculators is the option to cater for multiple pay frequencies at the same time. Typically, paycheck calculators allow for frequencies of Weekly, Fortnightly or Monthly and some go as far as Daily and/or Quarterly but, not Hourly too and definitely not all at once. This advantage allows you to see how your personal pay views across a very broad range of frequencies and provides a comprehensive insight into your paycheck.
Recently, my wife presented me with the need to know how adding or subtracting work days or hours would impact on her take-home pay. Seeing as this has been a question in my mind in the past I thought to investigate and include this function. Now, you can see the results of say, dropping one day a week or picking up an extra hour a day across all payment frequency platforms. This is a very useful attribute and will assist you greatly in adapting to wage conditions.
Suppose it is 7 January 2016 and you would like to calculate your paycheck which includes information about your gross wage, tax withheld and after tax pay. Based on the date, you know the current financial year is 2015/16. You get paid a gross figure of $3,326.92 fortnightly and you work 5 days a week at 8 hours a day, totaling 40 hours a week.
Further to this you know that your Superannuation contribution is additional to your gross wage, you only have this one job which you are claiming the tax-free threshold for, you don’t participate in any studies so you don’t have a HELP or TSL debt, you are an Australian citizen and you have a TFN issued to your employer at commencement of employment.
Based on this information, the following screenshot is presented which highlights your gross wage of $3,326.92, your tax withheld of $836 and your resulting net pay of $2,490.92. You can also see that you get paid a gross wage of $86,500 annually, $332.69 daily and $41.59 hourly. More interestingly, you can see your take-home pay of $64,764 annually, $248.69 daily and $31.59 hourly.
Example #2 – change in working conditions
Assume the scenario above applies but, you are interested in knowing how all of this changes when you have to drop two days a week from work. This is where most other salary calculators fall short because their payment frequencies are limited to weekly or fortnightly. To run with this, let’s assume as before you only know your fortnightly figures – in this case a gross fortnightly wage of $3,326.92. Under the “Optional – Comparison” heading you will notice two fields, “Enter # of days per week you will work” and “Enter # of hours per day you will work”, now enter “3” in the first field (this will represent the reduction from 5 working days a week to the 3 days a week you are interested in) and enter “8” in the second field (this assumes you are only interested in the knowledge of reducing your working days and not adjusting your working hours – although you can modify this field as you please).
The result? Your gross wage reduces from $3,326.92 to $1,996.15 (a decline of $1,330.77) and your after tax income reduces from $2,490.92 to $1,632.15 (a decline of $858.77). This represents a major impact on your cash flow and ability to sustain your current level of living.
Tax Withheld Calculator
How this calculator works
This powerful calculator has been developed for use by people working and claiming tax in Australia only. By entering in factors such as income year, taxable income, pay frequency and other tax variables the model will determine your estimated gross pay, tax withheld and after-tax income.
This calculator is for use as a paycheck estimator and not for determining more comprehensive tax situations. While this calculator is based on tax schedules provided by the ATO (Australian Taxation Office) detailing the Tax-free Threshold, HELP and TSL repayments, Foreign Residency and TFN declarations, personal circumstances may influence the variables and alter the final calculation. The calculator doesn’t consider such variables as the Medicare Levy, Medicare Levy Surcharge, Tax offsets, Temporary Budget Repair Levy or Student Financial Supplement Scheme (SFSS) liabilities you may have.
- Enter your gross wage – before tax is applied
- Enter your wage payment frequency – how often you get paid. The droplist allows for Hourly, Daily, Weekly, Fortnightly, Monthly, Quarterly or Annually
- Enter the current working hours a week – the number of hours you would normally work to achieve this gross wage. If it varies just use an average for this purpose.
- Enter the current number of days a week you work – the number of working days a week the total working hours is spread over. Again, use an average if it varies from week to week.
- Enter the current number of hours a day you work – the average number of hours
- Select the income year – in Australia this ends 30 June. The calculator allows for the current (2015/16) and last (2014/15) financial year
- Select whether or not your gross wage includes Superannuation – Yes or No
- Select whether or not you are claiming the tax-free threshold – Yes or No, this is for low income earners or people with more than one job. It is the amount of money an individual can earn before tax is applied.
- Select whether or not you have a HELP or TSL debt – Yes or No, this applies if you have requested government assistance with your tertiary studies or trade apprenticeship
- Select whether or not you are considered a Foreign Resident for tax purposes – Yes or No, this applies if you do not pass permanent residency tests in Australia.
- Select whether or not you have a TFN and you will be declaring it’s use in the calculation – Yes or No, you don’t have to posses a Tax File Number but, you will pay more tax.
Optional – Comparison (if you would like to compare your current figures to that of a change in circumstances then you can include the following entries).
- Enter the comparison number of days a week you could work – the number of working days a week the total working hours is spread over. Again, use an average if it varies from week to week.
- Enter the comparison number of hours a day you could work – the average number of hours
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Tax Withheld Calculator
All fields marked with * are mandatory
Optional - Comparison