Paycheck Calculator New Hampshire - NH

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New Hampshire - NH Paycheck Calculator: Hourly and Salary

New Hampshire, also known as The Granite State, is a northern U.S. state in New England. Currently home to about 1.35 million people, this state is known for its old-school charm with historic towns and old cities as well as breath-taking scenery including mountains, lakes, rivers, and sea coasts. In addition, the New Hemisphere residents can enjoy all four seasons every year.

So are you moving to the Granite State to start your new life with a new career? Then you must continue reading to explore:

  • The thing you must know before moving to New Hampshire
  • Payroll Facts
  • Paycheck Calculation to compare different job offers in terms of take-home pay as well as to calculate employment cost for various business opportunities, to help you choose the best among the options available
  • Federal and State Payroll laws to further verify that your Paycheck calculation is according to laws
  • Frequently Asked Questions

We hope all these things would make your "moving to New Hampshire" a lot easier. So let's get started!


Things You Must Know Before Moving To New Hampshire

Moving across the town, another state or a new country, is a strenuous and tiresome job. You have to think about multiple perspectives to ensure your decision won't make you regret later. Wherefore, to help you, we have compiled some of the essential points that you must know before moving to New Hampshire:


Cost of Living:

Living cost varies from place to place. Therefore, it must be considered before proceeding. The cost of living in New Hampshire is 105.4 (according to bestplaces.net), which is slightly higher than the national average of 100 points. The cost of housing, utilities, and grocery contributes the most to higher living costs, whereas health and transportation are relatively cheaper than across the nation.


Cost of Housing:

Having a right, spacious, beautiful, yet affordable house is another most essential thing after the relocation. However, you must know about how much it is going to cost you before moving. As far as housing value in New Hampshire is concerned, the median house value here is $267,700, which is considerably higher than the national house value of $231,200. However, renting a house here is a bit more favorable, with the median rent of $1326 for two bedrooms and $1039 for a single bedroom.


Education:

New Hampshire has some of the best colleges and K-12 educational institutions in the country, for which it is ranked on #4 for Geographic Disparity: States with the Best (and Worst) Schools by USA Today. Some of the prestigious and notable high schools, colleges, and universities include Dartmouth College, University of New Hampshire (Durham), SAU 70 (Hanover), and Oyster River Cooperative School District (Durham).


Outdoor Activities:

No matter how lavish your house is, and how ideal your job is... Life without outing and fun is merely dull. But don't worry! The New England State has plenty of recreational opportunities to make your life exciting.

The Granite State has a lot to explore from its deep American historical places to natural attractions, including Hampton Beach, Theme Parks like Santa's Village and Story Land, Kancamagus Highway for Scenic Drive, Lake Winnipesaukee, Lucknow mansion, American Classic Arcade Museum and Andres Institute of Art Sculpture Garden.


Business and Job Opportunities:

The current Unemployment rate in New Hampshire is 2.6%, according to the Bureau of Labor Statistics, which is significantly lower and better than the national rate. So you won't find it hard to find a better source of income. Some of the fastest-growing jobs here are nurse practitioner, industrial mechanic, physical therapist, home health aid, and Web developer. Moreover, some of the highest-paying jobs include surgeon, dentist, CEO, and architect manager.

New Hampshire secures the 13th position in the United States for Overall Economy according to Economy Rankings by US News & World Report. Some of the Top industries with good business and job opportunities include Smart Manufacturing, High Technology, tourism, and Healthcare, so if your business idea or job skills lie within these categories, you are going to succeed here.

As you are now aware of most of the essential factors, let us jump to our main topic of how to calculate paycheck in New Hampshire.


How to Calculate Paycheck in New Hampshire?

Paycheck Calculation can help employers and employees in many ways, including assisting the employees in choosing the best one among several job offers. Likewise, this process also allows employers to deduce their employment costs for different businesses and choose the best one from it. Furthermore, it can also help them calculate the paycheck amount for their employees. But before discussing steps included in Paycheck calculation, you must be aware of some of the Hampshire Payroll facts.

Hampshire Payroll Facts:

  • In New Hampshire, employees pay Federal Income Tax at the rate of 0% to 37%, having seven tax brackets depending on income level and filing status.
  • Both Employers and Employees also pay FICA Tax, which comprises of Social Security Tax (12.4%) and Medicare Tax (2.9%). Half of these taxes are paid by the employee, whereas the employer funds the equal amount for each employee. Employees having a salary above $200,000, also pay an Additional Medicare Surtax of 0.9%. However, this surtax is not paid by the employer.
  • Luckily, Employees of the Granite State don't pay state income tax, except for the income from dividends and interest, which is charged at a flat rate of 5%.
  • No city or County in New Hampshire levies Local Income Tax
  • Employers in the Granite State pay State Unemployment Insurance Tax at the rate ranging from 0.1% to 7.0%, on the first $14,000 earned by each employee in a year. However, New Employers are given relief as they only have to pay a flat rate of 1.2%. (The rates are adjusted on Quarterly Basis. Therefore, so must look out for the notices)
  • The Minimum Wage rate in New Hampshire is equal to the Federal Minimum Wage rate of $7.25 for non-exempted employees. Moreover, the Cash Minimum wage rate for tipped employees is $3.26, with the maximum tip credit of $3.98.
  • New Hampshire doesn't have an Income tax Reciprocal Agreement with any other state, as it doesn't levy State Income Tax.
  • New Hampshire employees, unless or otherwise exempted, are paid overtime at the rate of one and half of regular hourly rate, for each excess hour worked after 40 hours in a workweek.
  • According to the Massachusetts Institute of Technology, the living wage in New Hampshire for a Single adult is $12.29, and for a couple (one working) with two children is $25.50.
  • The Average Annual Salary in New Hampshire is $70,030, which is significantly higher than the national average salary of $65,753, according to ZipRecruiter.
  • The Median Household income in New Hampshire State is $74,057, according to the United States Census Bureau.

As we are done with relocation to New Hampshire and its payroll facts, now it's time to calculate paycheck.


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 New Hampshire State doesn't charge any State Income Tax on its residents. However, Income from Interest and Dividend are charged with a flat rate of 5%. Moreover, 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 New Hampshire State Disability Insurance (SDI) Tax. However, it does require the employers to pay New Hampshire State Unemployment Insurance (SUI) tax, at the rate ranging from 0.1% to 7.0% on a first $14,000 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 1.2%.


Note: SUI Rates for New Hampshire Employers are changed every quarter. Therefore, you are required to keep a check on notices to make sure you have paid the right amount.

Step 8 – Withhold Local Payroll Taxes:

No city or county In New Hampshire 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 New Hampshire State Payroll Law:

  • The New Hampshire Employers are required to pay their employees on Weekly Pay frequency, with a payday of not more than eight days. However, Employers request for a less frequent pay period after the permission from the New Hampshire Department of Labor.
  • According to State Law, which is valid from 08/21/2011, no employee, unless otherwise exempted, shall be paid at an hourly rate lower than that outlined in the federal minimum wage law, which is currently $7.25 per hour. Moreover, the law also requires employers to pay overtime to their employees, unless otherwise exempted. It must be paid at the rate of one and half the regular hourly rate of an employee, for each excess hour worked after 40 hours in a workweek.
  • Following employees are exempted from both State and Federal Overtime and Minimum Wage law:
    1. Tipped Employees are exempted from Minimum Wage Law and are required to pay the Cash Minimum Wage rate of $3.27, with a maximum tip credit of $3.98.
    2. Executive Employees are exempted from Overtime Law
    3. Administrative Employees are exempted from Overtime Law
    4. Professional Employees are exempted from Overtime Law
    5. Outside Sales Persons are exempted from Minimum Wage and Overtime Law
    6. Computer systems analysts, software engineers, computer programmers, or other similarly skilled workers are exempted from Overtime Law
    7. Household labor, domestic labor, and farm labor are exempted from Minimum Wage and Overtime Law
    8. youth summer camps employees, newsboys, non-professional ski patrolmen, and golf caddies are exempted from Minimum Wage and Overtime Law
    9. There are several other exemptions for which you must refer to the State Labor Website.
  • Employers are not allowed to require the employee to work for five or more consecutive hours without 30 minutes of lunch break. However, if the employers can't allow lunch break, then they must allow eating and working at the same time and pay for it.
  • New Hampshire has no laws requiring employers to provide employees with either paid or unpaid vacation benefits, sick leaves, holiday leaves, Jury Duty leaves, bereavement leave, or voting leaves.

FAQs

Answer: Followings are the taxes and their rates taken out of employee's paycheck working in New Hampshire:

  • Federal Income Tax: This tax is distributed into seven tax brackets, depending on income level and filing status, with a rate range between 10% and 37%.
  • FICA Tax – Social Security: This tax is charged at a rate of 6.2%.
  • FICA Tax – Medicare: This tax is charged at the rate of 1.45%.
  • FICA Tax – Additional Medicare: Employees with an annual salary of $200,000 or more are charged with Additional Medicare Surtax of 0.9%.

Answer: No, New Hampshire doesn't have any state withholding tax. Whereas, employers are charged with State Unemployment Insurance Tax. Moreover, New Hampshire Employees and employers are also required to pay Federal Payroll Taxes.

Answer: The Average Annual Salary in New Hampshire is $70,030, which is significantly higher than the national average salary of $65,753.

Answer: The Minimum Wage rate in New Hampshire is equal to the Federal Minimum Wage rate of $7.25 for non-exempted employees.

Answer: The cost of living index in New Hampshire is 105.4, whereas the national index is 100 points. This cost is deduced after factoring in the cost of housing, groceries, healthcare, transportation, utilities, and miscellaneous expenses.

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