Whether you are looking to calculate how much your wage should be at the end of the month or you’re an employer wanting to see where your business’ expenditure is heading, a wage calculator is able to help.
Wages calculators like these are able to clearly display your wage breakdown by time; such as daily, weekly, monthly or yearly. They are able to take into consideration factors like your income tax and national insurance deductions to give you a clearer view on your personal finances.
With a wages calculator, you’re also able to segment your finances and calculate savings, amongst other things that you need to afford.
How to Use a Wage Calculator
Some questions on the net wage calculator may be fill-in-the-blank type questions, and others may require a ‘yes’ or ‘no’ answer. When answering the questions, you will notice that there are differences in the questions asked depending on what software you’re using, but all net wage calculators will be able to give you a similar end result if you enter the information consistently.
Read the questions carefully on the wage calculator software and answer them as accurately as possible.
Required Information
In order to calculate your wages and for the software to be the most effective, you will often need the following details to hand:
- Gross wage (yearly / monthly / hourly)
- Tax year
- Pension allowance
- Student loan allowance
- Age
You may also want to consider if you work overtime hours, and the rate in which this is paid at by your employer.
Calculating Wage Tax
Currently, wage tax can be deducted from your salary if you’re employed. This can be done through Pay As You Earn (PAYE) schemes. If you’re self-employed, your wage tax will need to be paid once you’ve completed a self-assessment form.
In order to calculate this as a self-employed person, you will want to add up your taxable income and deduct the money that you have spent on tax-free allowances. However, a wage tax calculator is able to figure this out for you.
You are able to check the wage tax that you’re paying through a calculator like this, and you may be entitled to a refund if you aren’t left with any taxable profits.
Often, a wage calculator will display the amount that you’re expected to pay in tax and insurance over the course of the year. However, you may want to consider using a different calculator that is solely to calculate income tax for the most accurate results when it comes to this aspect of your wage.
