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:
We hope all these things would make your "moving to New Hampshire" a lot easier. So let's get started!
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:
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.
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.
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).
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.
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.
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.
As we are done with relocation to New Hampshire and its payroll facts, now it's time to calculate paycheck.
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:
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.
To calculate gross wage for an hourly 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:
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.
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:
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:
Filing Status | Standard Deduction Amount |
---|---|
Single Filers | $12,200 |
Married, Filing Jointly | $24,400 |
Married, Filing Separately | $12,200 |
Head of Household | $18,350 |
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:
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% |
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% |
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% |
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% |
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:
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.
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 |
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.
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:
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.
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%.
No city or county In New Hampshire charges any Local Income Tax.
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.
Answer: Followings are the taxes and their rates taken out of employee's paycheck working in New Hampshire:
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.