Paycheck Calculator Nevada - NV

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Nevada - NV Paycheck Calculator: Hourly and Salary

Nevada, a state located in the Western part of the United States, having Utah on its east, Arizona, to its south-east, California to the West, Idaho to the northeast, and Oregon to the northwest border. The state is 9th least densely populated, 7th most extensive, the 32nd most populous among the US States.

Nevada is known by several names, where "The Silver State," "The Battle Born State," and "The Sagebrush State" are among the most popular. This state is home to never-ending outdoor fun, stunning landscapes, reasonable cost of living, a more appealing system of taxes, and a growing job market.

Are you thinking about moving to Nevada? Got mouth-watering job offers? Or got a fantastic startup idea to set up in Nevada but can't finalize your decision? Don't Worry! This guide will teach you some of the essential factors to make your choice easy. Here are some of the points we are going to discuss:

  • The things you must know before moving to Nevada.
  • A detailed step-by-step guide on Paycheck Calculation to help you:
    1. Compare different job offers in terms of take-home pay and choose the best one among them.
    2. To deduce the employment cost of different business ideas, that would help calculate the total cost and choose the most profitable one.
    3. To help employers of Nevada to calculate their employee's paycheck using our Paycheck Calculator.
    4. To help employees working in Nevada to calculate their take-home pay using our Paycheck Calculator, for budgeting, etc.
  • All the necessary Federal and Nevada State Payroll Facts and Laws to make paycheck calculation more realistic, accurate, and in compliance with the law.

As you can see, this guide can help you in many ways. So without wasting any of your precious time, let's get started.


Thing You Must Know Before Moving to Nevada:

Domestic or International Migration isn't an easy job. You have to look through several factors before making a life-changing decision. So if you are planning to start your new life in the Silver State, then you must know some of the following points:


Cost of Living:

You can enjoy a reasonably low cost of living in Nevada if you are relocating from states like California. However, with the cost of living index of 110, which is 10 points higher than the US index of 100 points, the state is reasonably expensive than most of the states. Housing and transportation cost plays a significant role in a higher cost overall, but it is still reasonable than the neighboring states, especially California.


Cost of Housing:

As we have said earlier, Housing in Nevada is relatively cheaper than its neighboring states like California. Still, it is higher than most of the states, with the cost of a housing index of 127.5 (whereas the National Housing Cost index is 100). The median cost of buying a house in Nevada is $294,700. However, renting it would be more economical as the median rental value is around $899 for a single bedroom and $1,153 for a double bedroom. Cities like Caliente, Carlin, Ely, and Lovelock are among the cheapest ones to live in.


Education:

According to the US Today ranking for Geographic Disparity: States with the Best (and Worst) Schools, Nevada secures the last spot due to poor education standards, funding, and outcomes. Nonetheless, institutions like Nevada State College (Henderson), University of Nevada – Reno (Reno), and Sierra Nevada College (Incline Village) are worth considering.


Outdoor Activities:

The Sagebrush State is an outdoor enthusiast's paradise due to stunning and diverse landscapes including impressive mountains, stunning canyons, deserts, valleys, caves as well as plenty of outdoor recreational activities from hiking and mountain biking to swimming and skiing.

Moreover, Nature & Parks like Red Rock Canyon National Conservation Area, Bellagio Conservatory & Botanical Garden, Museums like The Liberace Museum Collection Tour, Zoos, Aquariums & Amusement Parks like Lion Habitat Ranch and SeaQuest and Sights & Landmarks like Fountains of Bellagio, High Roller are also worth visiting to make your weekends and vacations memorable.


Weather:

Nevada is famous for boasting 300+ days of sunshine each year, thus making it the best place for Seasonal Affective Disorder (SAD) patients. However, as Nevada's huge part is a desert, so you make experience temperature extremities like freezing cold winters and unbearably hot summers, especially in the northern part of the state.


Job and Business Opportunities:

According to the Bureau of Labor Statistics, the Unemployment rate in Nevada is 4.9%, which is slightly higher than the national average of 4.1%. Still, it has a growing job market, mainly for its gambling and tourism industry. Besides, there are business and job opportunities in other key sectors like aerospace and defense, technology, agriculture, mining, energy, and healthcare.

Some of the fastest-growing job in the Silver State, according to zippia.com are electronic assembler, line leader, cement mason, industrial engineer, anesthesiologist, surgeon, and pediatrician.


So these were some of the essential factors you must consider before moving to Nevada, and we can assume they would have helped you in finalizing your decision.

Once you have made your mind, the next thing is to decide what job or Business to choose to earn your living. Wherefore, to compare different job offers or business opportunities, you are required to learn Paycheck calculation, which will play a vital role in comparing your options in terms of take-home income.

But before jumping on to Steps involved in Paycheck Calculation, you must be aware of the following Nevada Payroll Facts:

Nevada Payroll Facts:

  • Employees in Nevada are required to pay Federal Income Tax, which is withheld from their paycheck at the rate range between 0% to 37%, having seven tax brackets, depending on income level and filing status.
  • Both Employers and Employees of Nevada are also required to pay the Federal Insurance Contributions Act (FICA) Taxes that comprises of Social Security Tax and Medicare Tax. The employee is charged with 6.2% of Social Security and 1.45% of Medicare on their wage. Meanwhile, the employer is required to pay the matching amount for each of its employees. Moreover, if the employee's annual salary exceeds the defined threshold, the employee is charged with the Additional Medicare surtax of 0.9%.
  • Luckily, Nevada Residents are not charged with State Income Tax.
  • No City or County in Nevada levies Local Income Tax on its residents.
  • Employers in Nevada are required to pay State Unemployment Insurances (SUI) Tax. This tax is charged at the rate range between 0.3% and 5.40%, on the first $32,500 of the taxable wage earned by each employee annually. However, new employers are given relief as they only have to pay a flat rate of 35.
  • Employers eligible for SUI tax, are also required to pay Modified Business Tax. This tax is charged at the rate of 1.475% (General Business) if the employer's total gross wages (less health care benefits) paid to their employees are equal to $62,500 or more in a quarter. However, the rate for financial institutions is higher.
  • The Federal Minimum wage rate for non-exempted employees is $7.25. The Federal Cash Minimum wage rate for Tipped Employee (earning $30 or more in tip per month) is $2.13, with the maximum tip credit of $5.12.
  • The Nevada State Minimum wage rate for employees with qualified health benefits is $7.25, and for employees who are not offered qualified health benefits is $8.25.
  • Nevada Overtime Law requires the employer to pay overtime to their non-exempted employees at one, and half of the regular hourly rate for each excess hour worked after 40 hours in a workweek. Moreover, it also requires to pay overtime for each excess hour worked after 8 hours in a workday to non-exempted employees who are compensated at less than 1½ times Nevada's minimum wage.
  • Nevada State doesn't have a reciprocal agreement with other states, as it doesn't charge any state income tax.
  • According to the Massachusetts Institute of Technology, the Livable wage in Nevada for a single adult with no child is $11.26, and for a couple (one working) with one child is $22.47.
  • The average salary in the Silver State ranges from approximately $10.32 per hour ($21,524 per year) for Sales Associate to $42.72 per hour ($89,101 per year) for Registered Nurse - Medical/Surgical.
  • The Median Household income for residents in Nevada is $57,598, according to United States Census Bureau.

As we are done with relocation to Nevada and its payroll facts, now it's time to calculate paycheck. This paycheck calculation can help you compare different job offers, your take-home pay from your job in Nevada, or your employment cost as an employer.


Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.

Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:

Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage; the employers are also required to follow Overtime wage law provided by the federal, state, and local authorities.


Note: All the relevant laws are discussed in detail ahead.

To calculate gross wage for an hourly employee:

  1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
  2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
  3. Add overtime hours (if any) worked by the employee.

Quick Tip: You can also use our Timecard with overtime Calculator to calculate Gross Wage for Hourly Employee instantly.


Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

  • Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.


Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

  • FSA - Flexible Spending Accounts
  • HSA - Health Savings Accounts
  • Retirement savings accounts like a traditional 401(k)
  • Some of the Fringe Benefits
  • health insurance
  • accident insurance
  • dental and vision insurance
  • Commuter Benefits
  • Short-Term Disability

Note: Pre-Tax deduction rate, contribution limits, special tax withholding rules change from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

All Filers(Updated Dec 2019)
Filing Status Standard Deduction Amount
Single Filers $12,200
Married, Filing Jointly $24,400
Married, Filing Separately $12,200
Head of Household $18,350

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.

The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:

  1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2020.

  1. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Income Over Filing Status
$250,000 Married Filing Jointly
$125,000 Married Filing Separately
$200,000 Single

Note: Employers are not required to pay an equal amount for Additional Medicare Surtax.

Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.

Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

  • Charitable contributions
  • Disability insurance
  • Garnishments
  • Specific Retirement Plans like Roth 401(k)
  • Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The Silver State doesn't charge any State Income Tax on its residents. However, employers are required to pay State Unemployment Insurance Tax as well as Modified Business Tax.


State Unemployment Insurance (SUI) Tax

The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Nevada State Disability Insurance (SDI) Tax. However, it does require the employers to pay Nevada State Unemployment Insurance (SUI) tax, at the rate ranging from 0.3% to 5.4% on a first $32,500 earned in wages by each employee in a year. However, new employers are given relief as they only have to pay a flat rate of 3%.


Modified Business Tax

Employers eligible for The State Unemployment Insurance SUI tax, are also required to pay Modified Business Tax. This tax is charged at the rate of 1.475% for General Business employers, if the employer's total gross wages (less health care benefits) paid to their employees are equal to $62,500 or more in a quarter. However, the rate for financial institutions is higher.


Step 8 – Withhold Local Payroll Taxes:

No city or county In Nevada charges any Local Income Tax.


Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.


Federal and Nevada Payroll Laws:

  • Nevada State Law requires employers to pay at least twice a month (Semi-Monthly) or more frequently. Moreover, the payday must for the last pay period mustn't be more than 15 days.
  • Nevada and Federal law require the employer to pay a minimum wage rate of $7.25 to the employees enjoying health benefits. Moreover, employees without Health Benefits should be paid at least the minimum wage rate of $8.25.
  • Nevada and Federal Law requires the employer to pay overtime to their employees at one and half of the regular hourly rate for each excess hour worked after 40 hours in a workweek. Moreover, it also requires to pay overtime for each excess hour worked after 8 hours in a workday to non-exempted employees who are compensated at less than 1½ times Nevada's minimum wage. However, the following employees are exempted from Minimum wage and overtime law, according to FLSA and Nevada State:
    1. Executive employees
    2. Administrative employees
    3. Professional employees
    4. Outside Salespersons earning through commission
    5. Casual Babysitters
    6. Domestic service employees living within their work premises.
    7. Taxicab and Limousine drivers
  • Neither Nevada laws nor Federal Laws require employers to provide employees with paid or unpaid vacation benefits. Moreover, they also don't need to provide sick leaves, holiday leaves, jury duty leaves, bereavement leave, or leave to attend funerals.
  • Nevada State Law requires the employers to provide at least 30 minutes Meal or Lunch Break to their employees working for consecutive 8 hours or more.
  • The State requires the employers to provide at least 10 minutes of PAID Rest Break for every four hours worked or major fraction thereof. There is some exception to this law, for which you can refer to Rev. Stat. 608.019.
Also Check: Nevada Sales and Reverse Sales tax Calculator to Calculate the amount of tax included in a gross price as well as the amount you should add to a net price.

FAQs

Answer: Following taxes are taken out of employee's paycheck while working in Nevada:

  • Federal Income Tax: This tax is charged at a range between 0% and 37%, distributed in seven tax brackets, depending on income level and filing status.
  • FICA Tax: This tax is charged at the rate of 7.56%, where 6.2% is for Social Security, and 1.45% is for Medicare tax. If the employee's annual wage exceeds the defined threshold, then you are also charged with additional Medicare surtax of 0.9%.

Answer: The state doesn't charge Income tax on its residents, as well as levies, no franchise tax, no corporate tax, and no inventory tax. However, Nevada does have a 6.85% of sales tax and some other fees too.

Answer: The Living wage in Nevada for a single adult with no child is $11.26, and for a couple (one working) with one child is $22.47, and for a couple (both working) with two children is $16.14.

Answer: The Nevada State Minimum wage rate for employees with qualified health benefits is $7.25, and for employees who are not offered qualified health benefits is $8.25.

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