You just received your paycheck. You glance at it expecting $2,308 (your bi-weekly gross pay from a $60,000 annual salary), but the actual deposit is only $1,685. Where did the other $623 go? It's taxes. Federal income tax, Social Security tax, Medicare tax, and possibly state and local taxes all came out. But you're confused about exactly what was withheld and why the numbers vary slightly each paycheck. You could try to calculate it manually using tax tables, FICA rates, and your specific withholding information. But the math is complex, involves multiple steps, and varies based on your location and personal situation. Or you could use a paycheck calculator to instantly show that after all taxes and deductions, your $2,308 gross bi-weekly pay becomes $1,685 net pay—the actual amount that hits your bank account. A paycheck calculator estimates your take-home pay by calculating gross salary, subtracting all applicable taxes (federal, state, local, and FICA), and accounting for ...