Why is my take-home lower than expected?
FICA alone is 7.65%, and federal withholding is calculated as if every cheque repeats all year. Pre-tax benefits, 401(k) contributions and state tax usually explain the rest.
Calculate your actual take-home pay after all deductions including federal tax, state tax, FICA, insurance, and retirement contributions.
Net pay = gross − pre-tax deductions − federal tax − state tax − FICA (6.2% Social Security to the wage cap + 1.45% Medicare) − post-tax deductions.
On $6,000 monthly gross with a $400 401(k) contribution, roughly $780 federal, $250 state and $428 FICA leave about $4,142 net — a 69% take-home rate.
FICA alone is 7.65%, and federal withholding is calculated as if every cheque repeats all year. Pre-tax benefits, 401(k) contributions and state tax usually explain the rest.
Yes. 401(k), HSA and premium contributions come out before federal and state tax, so a $500 contribution typically reduces take-home by only $350–$400.
Update your W-4 if you get a large annual refund, use an HSA if eligible, and check state-specific credits. A refund is an interest-free loan you made to the government.