Paycheck Calculator New York - NY

(Tax Year 2023: Last Updated on May 28, 2023)

Newyork residents who want to see how much money they will take home each week, month, or year can use this calculator. Name, check date, marital status, and the sum of federal and state withholdings are the only pieces of information needed. The outcome is shown after choosing "calculate paycheck." The progressive income tax rate of Newyork rates ranges from 4%-10.9%.

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Pay Type	Hours	Amount
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Time & 1/2
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Federal Income Tax
Social Security
Medicare
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Table Of Content

New York - NY Paycheck Calculator: Hourly and Salary

New York, a state situated in the Northeastern region of the United States, famous for Ney York City (NYC), Niagara Falls, Empire States, Central Park, and Times Square. With a population of 19.5 million, the New York State is 4^th most populous and 27^th largest state in the US.

Albany is the state's capital, yet New York City (NYC) is the most popular and desired city to live in. It is the city that never sleeps. NYC is home to most of the billionaires in the world and is the vital hub for many industries, including finance, media, tech, and real state. Besides, this Empire state has diverse opportunities, natural wonders, rich history, adventurous activities, and a wide range of possibilities for single, and families.

So if you want to start your new life, with a fantastic job or small business in the New York State, and looking for reasons to finalize your decision? Then you are at the right spot. Our Travel experts have joined hands with Finance experts to bring you a one-of-its-kind "moving to New York" Guide. The guide covers the following topics:

• Things you must know before moving to New York
• New York Payroll Facts
• How to calculate Paycheck in New York? Are you thinking about why it's Important? Well… It is essential because:
  • It can help employees to compare different job offers from New York in terms of Take-Home Pay
  • It allows the small business employers to compare various business opportunities in New York by in terms of employment cost.
  • It also allows employers to calculate the Paycheck amount for each of their employees instantly using our Paycheck Calculator.
• Federal and New York State Payroll Laws to ensure your paycheck amounts comply with payroll laws.

Things you must know before moving to New York

Moving from town to town, city to city, state to state or country to country isn't a "piece-of-cake." You require days of research, planning, and execution to make your relocation successful. So if you are planning to move to New York State, you must consider some of the following factors to make your decision easy:

Cost of Living:

The living cost in the New York state is 120.5 points, which is considerably higher than the national average of 100 points. The cost of housing and transportation contributes the most to higher costs, whereas utilities, health, grocery, and miscellaneous expenses are almost near to the national average.

Cost of Housing:

Housing is quite expensive in the Empire State, having the median home value of $305,000, whereas the national average value is $231,200. However, cities in Upstate New York are relatively cheaper to own.

If you can't afford to buy a house, then you can easily rent it. The median rent in expensive cities like New York (NYC) is $3,300 / month. However, you can rent a two-bedroom house in cities like Albany, Rochester, and Buffalo at around $1000/month.

Education:

New York State has a lot to offer in terms of education for your children. There are numerous well-funded and prestigious educational institutes all around the state, especially in New York City (NYC). In fact, NYC is known for having the world-largest public school system.

Some of the well-reputed educational institutes include Pittsford Central School District (Monroe County), Jericho Union Free School District (NYC area), Fayette-Manlius Central School District (Onondaga County), Columbia University, Cornell University, and New York University.

Outdoor Activities:

From indoor activities to outdoor fun, New York has it all covered. You can enjoy hiking, museums, festivals, live entertainment, wine tasting. Moreover, you can visit fun family places like Hunter Mountain (Zip-lines), Holiday Valley Mountain Coaster, and Strong Museum of Play. Or explore historical and architectural marvels like Saratoga National Historical Park, Adirondack Park, and Boldt Castle.

The state also has an abundance of opportunities for nature lovers, including Howe Caverns, Lake George, Watkins Glen State Park, Niagara Falls, Central Park, and a lot more.

Weather:

The state has a humid continental climate and experiences all four seasons. Snowy winters. Crisp Springs. Hot summer and Colorful autumn. However, Temperatures in winter and summer can go extreme. Moreover, you can also expect natural disasters comes in the form of blizzards, specifically Nor'easters.

Business and Job Opportunities:

Based on GDP per Capita at 11 positions, and average weekly wage at 6^th position in the nation, New York State has 21^st position for the overall economy. It's no surprise that the job market in the Empire State is booming with an unemployment rate of just 4.6%. Some of the fastest-growing jobs here include software developer, accountant, marketing assistant, financial analyst, and physical therapist. Moreover, some of the highest-paying jobs in the state are pharmacists, professors, architects, and physical therapists.

For a small business as well as job opportunities, you can also target some of the other flourishing industries like Retail, Entertainment, Real Estate, Consulting, Tourism, and Construction.

Pros and Cons of New York State:

Here is the quick round-up for all the pros and cons of the New York State:

These were some of the factors regarding "Moving to New York" you must consider. We hope they are helpful enough to finalize your decision.

No, let's jump to your main topic of Paycheck Calculation in New York, for which you need to know about the following State payroll facts:

New York Payroll Facts:

• The employees working in New York pay federal income tax, which is distributed in seven tax brackets dependent on income level and filing status with the rates ranging between 10% and 37%.
• Both employers and employees of New York pay FICA taxes which comprises of Social Security and Medicare Tax. Social security is charged at the rate of 12.4% and Medicare at 2.9%, where the employee pays half of both taxes, and the employer pays equal half for each employee. However, if the employee's annual wage exceeds $200,000, then they are charged with an Additional Medicare surtax of 0.9%.
• Employees in New York state pay State Income Tax, which is charged at a rate ranging between 4% and 8.82%, distributed in eight tax brackets dependent on income level and filing status. Supplemental Wages and Bonuses can be charged at a flat rate of 9.62%.
• Two cities and counties in New York State levies Local Income Tax. New York City (NYC) employees also pay local income tax that ranges from 2.907% to 3.876%, distributed on four tax brackets, depending on income level and filing status. Moreover, Yonkers also levies local income tax at the rate of 16.75% of the resident's net state tax, while non-residents pay 0.5% of wages.
• Employers in New York State pay State Unemployment Insurance (SUI) tax on the first $11,600 of taxable earning for each employee at the rate range of 0.525% and 7.825%. However, certain churches and non-profit organizations are exempted from this law. Moreover, new employers only pay at a flat rate of 3.2%.
• New York Employees also contribute 0.5% (Up to $0.60 per week) of their wages for New York State Disability Insurance (SDI) Tax to cover off-the-job injury or illness. In contrast, the employer pays the difference between benefit-cost and employee contribution.
• The employe
• es pay 0.270% of wages (up to an annual maximum of $196.72) for Family Leave Insurance.
• Employers having payroll expenses over $312,500 per calendar quarter of business in New York, Bronx, Kings, Queens, Richmond, Rockland, Nassau, Suffolk, Orange, Dutchess, and Westchester counties pay New York Metropolitan Commuter Transportation Mobility Tax (MCTMT). This tax is charged at the rate ranging from 0.11% to 0.34%, depending on the amount of payroll expenses paid each quarter.
• The Federal Minimum Wage rate for employees, unless or otherwise exempted, is $7.25, whereas the State Minimum Wage rate is $11.80. Moreover, the State Cash Minimum Wage rate for Tipped employees is $7.85, with a maximum tip credit of $3.95.
• The Median Household income in New York State is $65,323, according to United States Census Bureau.
• The Livable Wage in New York State for a Single is $15.56, and for a couple (1 working) with one child is $27.44.
• Employers 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, they also provide at least 24 consecutive hours of rest in a calendar week.
• New York State doesn't have a Reciprocal Agreement with any state, so non-resident employees working in New York are required to pay taxes in New York.

How to Calculate Paycheck in New York?

As we are done with relocation to New York 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.

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.

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

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:

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:

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 2023.

2. 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:

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 Empire State levies several payroll taxes on employers and employees, which are as follow:

State Income Tax:

The New York State follows a progressive income tax system, where income tax is charged on employee's paycheck at the rates, which vary depending on income level and filing status, ranging between 4.00% and 8.82%.

Employers are required to withhold this tax from the employee's paycheck according to the information provided by the employee in Form NY IT-2104. Moreover, employees also needed to update all the information in the form, especially when on any of their significant life events like marriage, child's birth, or divorce.

State Unemployment Insurance (SUI) Tax

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

The state requires the employers to pay New York State Unemployment Insurance (SUI) tax, at the rate ranging from 0.525% to 7.825% on a first $11,600 (for 2023) 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 3.20%.

State Disability Insurance Tax:

The Empire State also charges State Disability Insurance (SDI) tax on both employers and employees. This tax is charged at 0.50% (Up to $0.60 per week) on employees, whereas employers are required to pay the difference between benefit-cost and employee contribution.

Family Leave Insurance (FLI):

To help the families to take care of their sick family member, or new baby (biological or adopted), the state grants Family Leave Insurance, which is funded by the employees at the rate of 0.270% of employee's wages, up to an annual maximum of $196.72.

New York Re-employment Services Fund:

This tax is to be paid by the employer at the rate of 0.075% of the first $11,400 of an employee's wages.

New York Metropolitan Commuter Transportation Mobility Tax (MCTMT):

This tax is applied to employers at the rates are 0.11 percent, 0.23 percent, and 0.34 percent, depending on the amount of payroll expenses paid each quarter. However, this tax is only applied if the business is conducted in Orange, Nassau, Suffolk, Kings, Queens, New York, Bronx, Dutchess, Richmond, Rockland, and Westchester counties.

Step 8 – Withhold Local Payroll Taxes:

Besides State Income Tax, New York City (NYC) and Yonkers charge Local Income Tax on its residents and non-residents working in the cities.

New York City surcharges:

New York City follows a progressive income tax system, the ranging from 3.078% to 3.876% distributed in 4 tax brackets depending on income level and filing status.

Yonkers Surcharge:

Yonkers city local income tax on its residents at the rate of 16.75% of their net state tax, while non-residents pay 0.5% of wages. Tax rates may vary based on several factors.

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 York Payroll Laws:

• The State Law requires employers to pay:
  1. Most of the Employers and clerical employees on at least twice a month (semi-monthly), on the regular paydays scheduled by the employer.
  2. Manual Workers on a weekly basis.
  3. Railroad workers on or before Thursday of each week the wages earned during the seven days ending on Tuesday of the preceding week.
  4. Commission based Salespersons on at least a monthly basis.
• New York State requires the employers to pay at least the state minimum wage rate of $11.80 to their employees, unless or otherwise exempted. Moreover, the state also requires the employers to pay overtime at one and a half times the regular hourly rate for each excess hour worked after 40 hours in a workweek by a non-exempted employee. Employees exempted from State Minimum Wage and/or overtime law are:
  1. Tipped Employees: They are required to be paid a cash minimum wage rate of $7.85, with a maximum tip credit of $3.95. There are certain exemptions for Tipped employees.
  2. Fast Food Employees in New York City: They must be paid a minimum wage rate of $15.
  3. Fast Food Employees in Remainder of downstate (Nassau, Suffolk, and Westchester counties): They must be paid a minimum wage rate of $13.00.
  4. Bonafide executive, administrative, and professional employees are exempted from the state's minimum wage and overtime requirements.
  5. Outside Sales Persons, computer systems analysts, computer programmers, software engineers, or other similarly skilled workers are exempt from the state's minimum wage and overtime requirements.
  6. You can find additional exemptions here.
• Neither Federal nor State Law requires employers to provide employees with either paid or unpaid vacation benefits, sick leave benefits, holiday leave, or bereavement leaves. However, it does need to provide voting leave, and jury duty leaves on certain conditions.
• New York State requires the employers to provide employees at least (30) thirty minutes for the noonday meal to every employee who is employed in or in connection with a mercantile or other establishment or occupation coming under the provisions of this chapter.
• New York State also requires the employers to provide "One Day Rest in Seven Day Workweek" to their employees working in operating factories, mercantile establishments, hotels, and restaurants. Other employers are covered as well.

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