Paycheck Calculator Utah - UT

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Utah - UT Paycheck Calculator: Hourly and Salary

Utah, a state located in the western United States, sharing its borders with Idaho to the north, Colorado to the east, Nevada to the west, Arizona to the south, and Wyoming to the northeast.

Salt Lake City is the State's capital and the largest city, as well as the largest metro of Utah. Among 50 states, Utah is 30th-most-populous, 13th-largest by area, and 11th-least-densely populated. It is also reported as one of the top 3 fastest-growing states in the economy.

The Utah state, also known as the Beehive State, offers an impressive number of reasons to settle, including a plethora of job opportunities, endless outdoor activities, quality education, mesmerizing landscape. So if you have got a couple of job offers or business ideas or planned to move to Utah for starting your new life, this guide is just for you. Our Finance and Travel experts have joined hands to bring you one-of-its-kind guide that covers the following topics:

  • The thing you must know before moving to Utah
  • Utah Payroll Facts
  • How to Calculate Paycheck in Utah? – 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 Utah in terms of employment cost.
    • Help employees of Utah to calculate their upcoming Paycheck amount for verifying and budgeting.
    • Help employers in Utah to calculate Paycheck amounts for multiple employees instantly using our Utah Paycheck Calculator.
  • Federal and Utah Payroll Laws to ensure your paycheck complies with the law.
  • Frequently Asked Questions

We hope these topics, as mentioned above, would help discover more delicious trivia about Utah, and make your decision a lot easier. So let's get started!


Things You Must Know Before Moving to Utah

Packed your bag and about to move to Utah; a fourth overall as the best state to live in (according to U. S. News and World Report)? Wait! That's not enough! You need to know about the following factors before making your way to the Beehive State:

Cost of Living

Living in Utah is going to cost you some extra bucks compared to the rest of the state. The cost of living index in the state is 110.8 points, which is significantly higher than the national average of 100 points.

Housing is the most significant factor that contributes the most to the high cost of living. In contrast, grocery, health, utilities, transportation, and miscellaneous expenses are almost similar to other states.

Cost of Housing

Buying or renting a house in Utah may cost you higher than the most of other states, as the median home value here is $338,200, which is significantly higher than the national median home value of $231,200. Besides, Median Rental Expense for a single bedroom in Utah is $797, and for a double bedroom is $986 per month. But if course, cost varies from location to location.

If you are looking for affordable cities in Utah in terms of accommodation, then you must prefer settling in Washington Terrace, Harrisville, Hyrum, or Price.

Business and Job Opportunities

Utah secures the number 1 spot for economic health and employment and on has the second-best economy in the nation, according to WalletHub. Moreover, the state minimum wage rate is $7.25, and the unemployment rate here is 2.5%. All of these stats are appealing enough for job seekers to start their new job career in Utah.

Some of the fastest-growing job fields in Utah include software developer, veterinarian technician, Interpreter/translator, and web developer. Additionally, some of the highest paying job in the state contains OB/GYN, surgeon, practitioner, and petroleum engineer.

The Beehive State also offers fantastic opportunities for entrepreneurs for business, especially in industries like Aerospace and Defense, Health Technology, and Information Technology.

Education

Utah is home to numerous nationally acclaimed public schools and universities, including Park City School District (Park City), Success Academy (Cedar City), Brigham Young University (Provo) and Westminster College (Salt Lake City). These educational institutes are among those who provide quality education to help Utah to secure 10th for overall education in the United States.

Weather

You can experience hot summers and plenty of snowfall in winters in Utah, as the state features a dry, semi-arid to a desert climate. On average, you can enjoy 15 inches of rain, 240 days of sunshine, and 43 inches of snowfall per year, but of course, this depending on location.

Unfortunately, the state also has threats and risks of experiencing natural disasters like Earthquakes, Floods, and Snowstorms.

Outdoor Activities

Utah is home to endless outdoor opportunities to make your weekends and holidays memorable with your friends and family. You can enjoy delicious food & Drink in places like Cat Cora's Kitchen and The Roof Restaurant. You can have fun & play games in spots like Escape Room Park City and Mystery Escape Room. Or you can explore the Nature & Parks like Bryce Canyon National Park and Navajo / Queens Garden Loop.

Moreover, the state also has several Sights & Landmarks like Inspiration Point, Museums like Kanab Heritage House Museum, Natural History Museum of Utah, Art Galleries like David J. West Gallery, Skiing & Snowboarding like Backcountry Snowmobiling (Coalville) and Amusement Parks, Zoos & Aquariums like George S Eccles Dinosaur Park.


Pros and Cons

Here is the quick round-up of most of the happy and sad things about the Utah State:

Pros:
  • A second-best economy which is booming
  • Endless outdoor opportunities
  • Low crime rate
  • Quality Education
  • Amicable people
  • Stunning and clear sky view
Cons:
  • The high cost of housing
  • Extreme weather
  • Lack of diversity
  • No beaches

Utah Payroll Facts

  • Employers in Utah withhold Federal Income Tax from their employee's paycheck according to seven tax brackets, dependent on income level and filing status. The rate charged ranges between 10% and 37%.
  • Utah Employers also withhold FICA tax from employee's paycheck. FICA consists of Social Security tax, which is withheld at the rate of 6.2% on the employee's taxable wage up to $137,000. Another constituent of FICA tax is Medicare tax, which is withheld at the rate of 1.45% on the taxable wages up to $200,000. Additionally, the employer pays an equal amount of FICA tax for each of their employee. However, the employee only pays an Additional Medicare surtax of 0.9% if his/her taxable earnings exceed the threshold of $200,000.
  • Only employers in Utah pay FUTA Unemployment Tax, which is charged at the rate of 6% of the first $7,000 of each employee's taxable income. Moreover, they also pay State Unemployment Insurance (SUI) tax, which is charged at rates ranging from 0.1% to 7.1%, having the wage base is $36,600 (for 2020). However, new employers are charged with SUI tax based on their industry average. Moreover, if the employer pays the SUI tax in full and on time, then he/she is eligible to get a tax credit up to 5.4% on FUTA tax.
  • Employers of Beehive State withhold State Income Tax from their employee's paycheck at a flat rate of 4.95%, regardless of income level and filing status. Moreover, Supplemental Wages and Bonuses are also charged at the same rate.
  • No city or county in Utah charges local income tax.
  • Utah State regulates the same minimum wage rate as Federal Minimum wage at the rate of $7.25 per hour for employees, unless or otherwise exempted. Moreover, the Cash Minimum Wage rate for Tipped Employees is $2.13/hour, with a maximum tip credit of $5.12/hour. Additionally, Youth employees can be paid a minimum wage rate of $4.25.
  • Utah State doesn't have a reciprocal agreement with any other state, so no-residents employees are required to pay taxes in Utah.
  • The state of Utah doesn't have overtime law, so employers pay overtime according to FLSA law, to their non-exempted employees at the rate of 1 and ½ of their regular hourly rate for each excess hour worked after 40 hours in a workweek.
  • The livable wage for a couple (both working) with two children is $16.60/hour, while for a single adult is $11.60/hour, as reported by the Massachusetts Institute of Technology.
  • The median household income for Utah residents is $68,374, as reported by the United States Census Bureau.
  • The average annual salary in Utah is $62,061 ($30 per hour), which is significantly lower than the national average of $66,289.

How to Calculate Paycheck in Utah?

As we are done with moving to Utah 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. Utah State charges State Income Tax on the employees at a flat rate of $4.95, regardless of filing status and income level. Moreover, employers only are required to pay State Unemployment Insurance 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 Utah State Disability Insurance (SDI) tax on employers. However, it does require the employers to pay Utah State Unemployment Insurance (SUI) tax, at the rate ranging from 0.1% to 7.1% on a first $36,600 (in 2020) earned in wages by each employee in a year. However, new employers are given relief as they only have to pay a lower rate as assigned by state based on the employer's industry.


Note: SUI Rates for Utah Employers change 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 Utah 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 Utah Payroll Laws

  • Utah State law requires the employers to pay at least twice a month (semi-monthly) to their non-salaried employees and on regular designated paydays.
  • The Beehive state requires the employers to pay at least the minimum wage rate of $7.25 per hour to their employees, unless or otherwise exempted. Moreover, employers are also required (by FLSA Law) to pay overtime to their non-exempted employees at one and half of their regular hourly rate for each hour worked over 40 hours in a workweek. However, few employees are exempted under Utah State and/or Federal FLSA law for overtime and Minimum wage. Exempted employees include:
    • Tipped Employee: They are allowed to be paid a cash minimum wage rate of $2.13, with the maximum tip credit of $5.12.
    • Minor Employees under training: They are allowed to be paid a minimum wage rate of $4.25 per hour for the first 90 days of employment.
  • Utah State doesn't require the employers to provide meals and lunch breaks to their minor employees (age 18 or above). However, they are required to provide 30 minutes or more of the lunch break is scheduled for five or continuous hours to their youth employee (18 or less age). Moreover, youth employees are also entitled to receive 10 minutes of rest break every 3 hours.
  • Utah law doesn't require the employers to provide either paid or unpaid vacation benefits, sick leave benefits, holiday leave, jury duty leaves, or bereavement leave. However, they are required to provide voting leaves on certain conditions.

FAQs

Answer: Following are the taxes taken out of paycheck in Utah:

  • Federal Income Tax: This tax is withheld at the rate ranging between 0% and 37%, sorted in seven tax brackets according to income level and filing status.
  • FICA – Social Security: This tax is withheld at the rate of 6.2% of each employee's taxable wages up to $137,700.
  • FICA – Medicare: This tax is withheld by the employer at the rate of 1.45% of each employee's taxable wages up to $200,000 in a year. Moreover, if the annual income crosses the $200,000 threshold, then employees are charged an Additional surtax of 0.9%.
  • State Income Tax: This tax is withheld by the employer, at a flat rate of 4.95%, regardless of filing status and income level.

Answer: Yes, Utah has a state income tax, which is charged at a flat rate of 4.95%, regardless of income level and filing status.

Answer: Bonuses and other Supplemental Wages are taxed at a flat rate of 4.95% in Utah.

Answer: The livable wage for a couple (both working) with two children is $16.60/hour, while for a single adult is $11.60/hour, as reported by the Massachusetts Institute of Technology.

Answer: Utah State regulates the same minimum wage rate as Federal Minimum wage at the rate of $7.25 per hour for employees, unless or otherwise exempted. Moreover, the Cash Minimum Wage rate for Tipped Employees is $2.13/hour, with a maximum tip credit of $5.12/hour. Additionally, Youth employees can be paid a minimum wage rate of $4.25.

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