Paycheck Calculator Oklahoma - OK

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Oklahoma - OK Paycheck Calculator: Hourly and Salary

Oklahoma, also known as "The Sooner State," is a state located in South Central region of the United States, bordered with Arkansas on the east, Kansas on the north, Texas on the south and west, New Mexico on the west, Missouri on the northeast, and Colorado on the northwest.

The Sooner State is the 28th-most populous state, which is divided into 77 counties and comprises of 597 incorporated municipalities containing cities and towns. Oklahoma City (OKC) is the capital and largest city of Oklahoma State.

The State is a home of famous musicians like Blake Shelton and Kings of Leon and features several attractive selling points, including the cheaper cost of living and housing, diverse culture, and offers plenty of options in terms of both employment and business.

So are you mulling over relocation to Oklahoma? Got a fantastic business idea or job offers? No matter what your reasons are, we are here to help. This guide includes the following topics:

  • Things you must know before moving to Oklahoma
  • Oklahoma Payroll Facts
  • How to Calculate Paycheck in Oklahoma? – This section would benefit both employers and employees in the following ways:
    • Help job seekers to compare several job offers in terms of take-home pay and choose the best one.
    • Help entrepreneurs to compare different business opportunities in terms of employment cost.
    • Help employees of Oklahoma to calculate their upcoming Paycheck amount for verifying and budgeting.
    • Help employers in the Sooner State to calculate Paycheck amounts for multiple employees instantly using our Oklahoma Paycheck Calculator.
  • Federal and Oklahoma Payroll Laws to ensure your paycheck complies with the law.
  • Frequently Asked Questions

All these topics were put together to help make the best choice for you and your loved ones. So let's get started!


Thing You Must Know Before Moving To Oklahoma

Though, The Sooner State provides numerous reasons to fall in love with it, still there some drawbacks too. So it's better to know about both sides. Here are a few things to ponder before setting out for Oklahoma:

Cost of Living:

Living in Oklahoma is quite affordable. The cost of living index here is 83.7 points, whereas the national average is 100 points. The lower cost is due to amazingly cheaper housing costs, while other factors like health, grocery, transportation, utilities, and miscellaneous expenses are somewhat similar to the national average.

Cost of Housing:

Oklahoma secures 2nd position among the cheapest states to live in America in 2019, According to CNBC both for renting and buying. So you can buy or rent a house in "The Sooner State" at ridiculously cheaper rates. The median home value in the state is $124,800, while the national median home value is $231,200.

Even renting a house is also budget-friendly as the Median Rental Expense for single bedroom is $599 and for a double bedroom is $769. From Tulsa, through Oklahoma City, and all the way to Norman, you can find an affordable house to buy or rent easily.

Education:

Statistics about education in the Oklahoma State aren't appealing. It secures the 45th position among the states with the best schools by USA Today, due to the fifteenth-lowest high-school graduation rate and the seventh-lowest public-school funding in the nation.

However, engineering programs offered here are well respected and reputed. Some of the notable public and private educational institutes include the University of Tulsa (Tulsa), University of Oklahoma (Norman), Edmond Public Schools (Edmond), and Jenks Public Schools (Jenks).

Outdoor Activities:

Life without fun activities is merely dull! So Oklahoma has plenty much it to offer. You can plan your weekends for must-see attractions like Route 66: This historical highway travels that offers many roadside attractions, Oklahoma City Museum of Art, Armstrong Auditorium, Oklahoma City Zoo, and Chickasaw Cultural Center.

Moreover, you can also explore some cool and unusual stuff like The Center of the Universe, The Toy and Action Figure Museum, Mix-Tape' at The Womb, Pops, and Blue Whale of Catoosa.

Business and Job Opportunities:

Planning to load your old career or business on a truck, and bring it with you here in Oklahoma, or mulling over to start totally fresh. Either way, you should be updated about the business and job market in Oklahoma.

The Sooner State offers tons of opportunities for entrepreneurs and job seekers in the industries like Aerospace & Defense, Agriculture & Biosciences, Energy, and Information & Financial Services, providing with cost-saving policies, startup events, incubators, co-working spaces, flourishing economy, and great job markets.

The minimum wage rate in the state is pretty basic at $7.25/ hour, and the unemployment rate is 4%. But the stable economy, and substantial cost savings that the state offers, you still have got plenty of chances to land into a good job.

Some of the fastest-growing jobs available here are personal care assistant, physical therapist, computer machinist, industrial mechanic, and web developer. And if you are chasing some big bucks, then you can also try your skills and luck for the highest-paying positions like a surgeon, dentist, nurse anesthetist, or CEO.

Weather:

Get ready to experience unpredictable weather in Oklahoma. With an overall temperate humid subtropical climate, the summers can get unbearably hot & humid, and winters are quite cold too. Moreover, weather can course in a single day, and you never know what to expect the next hour; heat, rain, or powerful winds.

Pros and Cons:

Here is the quick round-up of why you should (Pros) or shouldn't (Cons) move to Oklahoma:

Pros:
  • Job and business stability
  • Cheaper housing cost
  • Low of cost of Living overall
  • Less crowded cities
  • Rich in culture and diversity
  • Delicious Bar B Que
  • No Rush Hour
Cons:
  • Unpredictable weather
  • Lack of Big Cities
  • Lower Quality Education
  • Weird laws

Oklahoma Payroll Facts

  • Employers in Oklahoma State withhold Federal Income Tax from their employee's paycheck at the rate ranging between 0% and 37%, depending on income level and filing status.
  • Both employers and employees pay FICA Taxes that consist of 12.4% of Social Security tax and 2.9% of Medicare Tax. Employers withhold half of both taxes from employee's paycheck and fund the other half themselves. However, if the employee's annual wage exceeds $200,000, then additional Medicare surtax is also charged.
  • Employers of the Sooner State also withhold State Income Tax, at progressive rates ranging from 0.50% up to 5.0%, distributed in six tax brackets dependent on income level and filing status. Moreover, Supplemental Wages and Bonuses are charged at a flat rate of 5.0%.
  • No city or county in Oklahoma levies local income tax.
  • Employers in Oklahoma pay FUTA taxes, which are 6% of the first $7,000 of each employee's taxable income for the year. Moreover, they also fund State Unemployment Insurance (SUI) Tax, at a rate ranging between 0.1% and 5.5% on a taxable wage of $18,700 of each employee. However, by paying SUI tax in full and on time, they claim a whopping 90% refund for FUTA taxes.
  • The State Minimum Wage rate in Oklahoma is equal to the Federal Minimum Wage rate of $7.25 for non-exempted employees. Moreover, the State Cash Minimum Wage rate for Tipped employees is $3.625, with the maximum tip credit of $3.625.
  • Employees, unless or otherwise exempted, in Oklahoma receive overtime for each excess hours they work after 40 hours in a workweek.
  • Oklahoma doesn't have an income tax reciprocal agreement with any state. Therefore, non-residents working in Oklahoma have to file nonresident state tax returns there.
  • The living wage for a single adult in Oklahoma is $10.94, and for a couple (one working) with no child is $18.19, according to the Massachusetts Institute of Technology.
  • Average Male Salary in Oklahoma is $59,946, and for females, it is $41,789, according to US Census Bureau.
  • The Median Household income in Oklahoma, according to the United States Census Bureau, is $51,424.

As we are done with relocation to Oklahoma 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 Oklahoma State charges State Income Tax on the employees. Moreover, employers are required to pay State Unemployment Insurance Tax.


State Income Tax:

Oklahoma follows a progressive income tax system, having six tax brackets dependent on income level and filing status. This tax is charged at a rate range of 0.50% to 5.0%. Moreover, Supplemental Wages and Bonuses can be charged at a flat rate of 5.0%.

The employer withholds this tax from the employee's paycheck according to the details provided by the employee in the Form OK-W-4. This form is filled by the employee while joining the job. Employees are required to keep the form updated with any significant life events like marriage, child's birth, and divorce.

Single Filers
Oklahoma Taxable Income Rate
$0 - $1,000 0.50%
$1,000 - $2,500 1.00%
$2,500 - $3,750 2.00%
$3,750 - $4,900 3.00%
$4,900 - $7,200 4.00%
$7,200+ 5.00%

Married, Filing Jointly
Oklahoma Taxable Income Rate
$0 - $2,000 0.50%
$2,000 - $5,000 1.00%
$5,000 - $7,500 2.00%
$7,500 - $9,800 3.00%
$9,800 - $12,200 4.00%
$12,200+ 5.00%

Married, Filing Separately
Oklahoma Taxable Income Rate
$0 - $1,000 0.50%
$1,000 - $2,500 1.00%
$2,500 - $3,750 2.00%
$3,750 - $4,900 3.00%
$4,900 - $7,200 4.00%
$7,200+ 5.00%

Head of Household
Oklahoma Taxable Income Rate
$0 - $2,000 0.50%
$2,000 - $5,000 1.00%
$5,000 - $7,500 2.00%
$7,500 - $9,800 3.00%
$9,800 - $12,200 4.00%
$12,200+ 5.00%

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 Oklahoma State Disability Insurance (SDI) Tax. However, it does require the employers to pay Oklahoma State Unemployment Insurance (SUI) tax, at the rate ranging from 0.1% to 5.5% on a first $18,700 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 1.5%.


Note: SUI Rates for Oklahoma Employers changes with time. 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 Oklahoma levies 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 Oklahoma State Payroll Laws

  • Oklahoma State requires the employers to pay to their non-exempted employees at least twice a month (semi-monthly pay frequency) on a regular payday assigned by the employer. However, exempted employees, as well as state, county, and municipal employees, can be paid on at least monthly pay frequency.
  • The state requires employers to pay at least the state minimum wage rate of $7.25 to their non-exempted employees.
  • Under federal and state law, employers are required to pay their employees, unless or otherwise exempted, at 1.5 times the employee's regular hourly rate for any hours worked over 40 during a workweek.
  • Employees exempted from the minimum wage, and overtime laws are:
    1. Farmworkers or feed store workers;
    2. Domestic workers;
    3. Government employees;
    4. Volunteer employees;
    5. Newspaper vendors or carriers, carriers under Part I of Interstate Commerce Act;
    6. Salespersons;
    7. Persons working in an executive, administrative, or professional capacity;
    8. Part-time workers (employed less than 25 hours per week);
    9. Persons under 18 who have not graduated high school or a vocational training program;
    10. Persons under 22 who are in high school, college, or a vocational training program;
    11. Reserve force deputy sheriffs.
  • Oklahoma does not have a state law requiring the employers to provide additional pay for work done on holidays or weekends. Moreover, they aren't even required to offer vacation, holiday, or other pay for time not worked.
  • Employers are not required under Oklahoma state law to provide employees with either paid or unpaid vacation benefits as well as sick leave benefits, holiday leaves, Jury Duty Leaves, or bereavement leaves.
  • The State law requires the employers to pay a 30-minute rest break to youth employees (of age under sixteen) for consecutive five or more hours. Moreover, employers are also required to provide one hour of rest break to youth employees working for eight straight hours or more. However, employees (of age sixteen (16) years or older) aren't required to receive rest or meal break.
Also Check: Oklahoma 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: The average Male Salary in Oklahoma is $59,946, and for females, it is $41,789, according to US Census Bureau.

Answer: Tax deduction from the paycheck depends on several factors, including filing status, annual income, allowances claimed, and what state and county you are working in. Therefore, tax rates vary from employee to employee. Here are some taxes along with their rates may be deducted from a paycheck while working in Oklahoma:

  1. Federal Income Tax: This tax range from 0% to a top marginal rate of 37%, distributed in seven tax brackets dependent on income level and filing status.
  2. FICA Tax: This tax consist of Social Security at 6.2% of the first $137,700 of taxable wages per year + Medicare at 1.45%. You may also be charged with an Additional Medicare surtax of 0.9%, if your annual wage exceeds $200,000 threshold.
  3. Oklahoma State Income Tax: This tax ranges from 50% to 5.00%, distributed in six tax brackets dependent on income level and filing status.

Answer: The current Minimum Wage in Oklahoma is equal to the Federal Minimum Wage rate of $7.25 for employees, unless or otherwise exempted. Moreover, the State Cash Minimum Wage rate for Tipped employees is $3.625, with the maximum tip credit of $3.625.

Answer: The state income tax rate in Oklahoma is a progressive tax that's based on the amount of income you earn and your filing status. The state's tax rates are as follows:

"Single" or "Married Filing Separately":

  • 5% for the first $1,000 for individuals
  • 1% on the next $1,000 to $2,500
  • 2% on the next $2,501 to $3,750
  • 3% on the next $3,751 to $4,900
  • 4% on the next $4,901 to $7,200
  • 5% on $7201 and above

"Head of Household" or "Married Filing jointly":

  • 5% for the first $2,000 for individuals
  • 1% on the next $2,001 to $5,000
  • 2% on the next $5,001 to $7,500
  • 3% on the next $7,501 to $9,800
  • 4% on the next $9,801 to $12,200
  • 5% on $12,201 and above
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