Get Ready to Roll with Our Hourly Paycheck Calculator

If you're a small business owner whose interests lie outside of staring at a computer screen and combing through endless spreadsheets, then you're going to love Roll's hourly paycheck calculator.

Ecommerce, small business owner with tablet taking sales orders and checking inventory.
Author By the Roll by ADP Editorial Team on March 20, 2023
Reading Time 5 min read
 
 

Do you need help figuring out how to calculate your hourly paychecks? Then you’re in the right place!

We know payroll processing isn't everyone's favorite admin task. But fortunately for you, it is ours! If you’re a small business owner whose interests lie outside of staring at a computer screen, combing through endless paperwork and spreadsheets, then you’re going to love Roll’s hourly paycheck calculator.

With just a few key pieces of employee information and a couple of clicks, Roll takes care of all of the math for you. Our unique, AI-driven platform combines an hourly paycheck calculator with overtime criteria, tax filing, and deductions to facilitate an accurate and headache-free payday on every cycle.

Roll’s payroll app has revolutionized small business payroll. Our easy-to-use platform allows you to effortlessly run payroll in under a minute. The best part? You can use our innovative app on any device, meaning you can calculate and make payments from anywhere, any time. When you use Roll, you hold your company’s payroll is in the palm of your hand — literally!

You can sign up for Roll and get started instantly, no training necessary! Our intuitive chat interface is simple — if you know how to text, you know how to run payroll with Roll. Let’s look at how small business owners like you can benefit from Roll’s modern technology and learn a bit more about how it all works.

 

The Power of an Hourly Paycheck Calculator

 

Calculating each employee’s gross-to-net hourly paycheck after taxes is a breeze with Roll. In addition to taking a humdrum task off your plate, there are several additional business advantages to utilizing payroll calculator technology:

 

Save Time

Running payroll manually can be time-consuming and frustrating. Just getting all the relevant spreadsheets you need opened, updated, and having the correct forms and paperwork at hand can take a big chunk out of your day. That’s before you even begin plugging this cycle’s data into an excel-based hourly paycheck estimator to come up with a starting figure. That’s why intelligent payroll processing is a game changer. When you use Roll’s hourly paycheck calculator, average payroll processing times can drop from several hours to under a minute!

 

Avoid Costly Errors

The more data you input manually, the more potential there is for typos and data entry errors. Payroll and taxation are heavily regulated by the IRS, and it’s crucial that payments and tax submissions are accurate. With dedicated payroll technology, say goodbye to manual errors and double (or triple) checking the numbers!

Eliminate Oversights

Using an automated hourly paycheck calculator means you don’t have to worry about accidentally overlooking local, state, or federal tax code changes. You can trust that Roll keeps up with all the relevant updates, helping you stay compliant. Plus, because tax filing is built-in and backed by ADP, the world’s experts in small business payroll, you know your payroll data will be pinpoint accurate every time.

Achieve Nationwide Compliance

If your small business operates across multiple locations, processing payroll may also include ensuring you comply with state and multi-jurisdiction employment and taxation laws. Because you can input employee details into Roll’s hourly paycheck calculator by state, you can be sure you’ll never fall outside of regional regulations. We have you covered across 50 states, including multi-jurisdictions.

 

Run Unlimited Payroll

It doesn’t matter what pay schedules your small business uses. With Roll at your service, you can use the platform as a monthly, semi-monthly, weekly, or bi-weekly hourly paycheck calculator. The choice is yours! You can even run easy off-cycle payments to cover per diem employees and independent contractors with just a few clicks.

 

Improve Data Security

If you calculate payroll manually using spreadsheets or a paper filing system, records may be at risk for theft, loss, or the accidental sharing of confidential data. With Roll, all of the information you need to complete your payroll processes and procedures is kept safe and private using ADP’s industry-leading safeguards.

 

Run Payroll from Anywhere

With smart payroll processing tools, you don’t even need to be on-site to get your employees paid. You can use Roll’s payroll app on your smartphone or tablet to run payroll whenever and wherever it fits into your day. All you need is internet access, and you’re good to go!

Access Payroll Support

When you’re a small business owner, the buck stops with you — but that doesn’t mean that you have to go it alone. When you use Roll’s payroll app for small businesses, you have 24/7 access to the help you need, when you need it, with live in-app chat support.

 

Hourly Paycheck Calculator

 

Roll’s intuitive paycheck calculator can be used for all employees, not just your hourly staff. All you need to do is enter the relevant federal and state W-4 information for each worker, their deductions and benefits, and we’ll crunch the numbers for you.

Switch easily from a salary to hourly paycheck calculator by imputing a rate and the number of hours worked. All of your wages, deductions, and payroll taxes are completed automatically. Job done! 

 

How to Calculate Paycheck Hours

 

It’s much more complex to manually calculate hourly paychecks after taxes and deductions. So, investing in a reliable payroll platform is well worth it. To give you an idea of how much time and energy an hourly paycheck calculator can save you, here's an overview of all the steps involved if you were going to determine an hourly employee’s salary the old-school way.

  • Check Employee Forms and Data: Verify worker classification and gather details.
  • Calculate Gross Pay: Multiply hourly rate by hours worked, add extras.
  • Apply Pre-tax Deductions: Deduct contributions before income taxes.
  • Apply Mandatory Deductions: Subtract federal, state, Social Security, and Medicare taxes.
  • Apply Post-Tax Deductions: Deduct items after income tax.
  • Pay Each Employee: Issue payment with gross, deductions, net.
  • Update Your Records: Maintain records for IRS compliance.

For more details about each step, please continue reading below. 

1. Check Employee Forms and Data

If you’re not using a payroll platform to store and automatically collate employee information, you’ll need to check each employee’s worker classification and collect Social Security (SS), Taxpayer Identification Number (TIN) details, etc., from the relevant forms, including:

2. Calculate Gross Pay

 To calculate a gross pay amount, multiply the employee’s hourly rate by the total number of hours worked, then add on any extras, such as:

  • Overtime payments
  • Commissions
  • Bonuses
  • Expense account reimbursements

3. Apply Pre-tax Deductions

Pre-tax deductions are taken from an employee's paycheck before state and federal taxes are withheld, therefore reducing the amount of taxable income an employee receives. Examples of pre-tax deductions include:

  • Employer-sponsored medical and dental contributions
  • Employer-sponsored retirement contributions
  • Employee retirement contributions
  • Group-term life insurance contributions

4. Apply Mandatory Deductions

Mandatory deductions include all standard federal withholding taxes and any applicable state withholding payroll taxes, plus Social Security (6.2%) and Medicare (1.45%). These deductions must be reported and submitted to the government in your Employer's Quarterly Income Tax Return using IRS Form 941

To accurately calculate each hourly paycheck after taxes, you’ll need the following information in order to deduct the correct percentage from each employee:

  • Tax Bracket – The IRS website is the best source for the most up-to-date tax rates and inflation information for the current tax year.
  • Tax Filing Status – An individual’s filing status also determines the rate at which their income is taxed. The five filing status categories are:
    • Single
    • Married Filing Jointly
    • Married Filing Separately
    • Head of Household
    • Qualifying Widow(er) with Dependent Child

5. Apply Post-Tax Deductions

Post-tax deductions are taken from an employee's paycheck after state and federal taxes have been withheld. Examples of post-tax deductions include:

  • Employee insurance premiums
  • Roth retirement contributions
  • Garnishments like child support fees, defaulted student loan repayments, and previously unpaid taxes.

Most states require employers to provide either a printed or electronic wage statement. If you’re not using payroll technology to automate this for you, you’ll need to make each pay stub yourself, ensuring you include:

6. Pay Each Employee

  • The total gross wage
  • A list of itemized deductions
  • The remaining net payment (take-home pay).

7. Update Your Records

All employers must be able to prove who they are paying and how much. So you should keep detailed records of the following to submit to the IRS and state legislators when you submit Form 941 and Form 940:

  • Timesheets
  • Pay stubs
  • Proof of receipt (it’s prudent to have employees sign to confirm they have received each payment)
  • Payroll taxes withheld
  • Bank transactions of tax payments and salary deductions paid to the government

If that all feels like a lot of work, it’s because it is. But it doesn’t have to be. That’s why Roll’s hourly paycheck calculator is perfect for small business owners who want to focus on what matters most — running their business.

 

Hourly Paycheck Calculator FAQs

 

If you don’t want to deal with the time and resources it takes to manually calculate hourly paychecks after taxes, a paycheck calculator can work wonders for your business. Not sure this tool is for you? We’ve compiled answers to some of the most frequently asked questions about our calculator.

 

How is the hourly rate calculated?

If you already have salaried employees working a similar role, calculating an hourly rate is straightforward. Simply divide the annual gross salary by 52 to get a weekly gross total, then divide that figure by the number of hours a week they work. For example, if a salaried employee earns $50,000 working 40 hours a week, that equates to $24.04 per hour (50,000 ÷ 52 = 961.54, and 961.54 ÷ 40 = 24.04).

How is overtime calculated?

The Fair Labor Standards Act (FLSA) states that nonexempt employees must receive overtime pay of no less than time and one-half their regular rate for any hours worked in excess of 40 per week. However, wage and hour laws vary by state and local jurisdiction. Plus, there are other variables to consider, such as commissions, flexible schedules, and other forms of compensation like non-discretionary bonuses and shift pay. So, if you’re calculating overtime manually, you must ensure you account for every factor and apply the overtime pay rate most favorable to the employee (as per federal and state laws).

How do I know what deductions to make?

Aside from mandatory state and federal deductions, you’ll likely need to navigate a range of voluntary and involuntary deductions:

  • Voluntary deductions – These are additional amounts employees have elected to have subtracted from their gross pay. Voluntary contributions for life insurance, healthcare, retirement plans, etc., are typically applied before state and federal taxes are withheld. Therefore, many employees commit to voluntary deductions to tap into healthcare and lifestyle benefits while simultaneously reducing their federal, state, and FICA taxable gross salaries.
  • Involuntary deductions – If you’re required to make court-ordered deductions from an employee’s pay, you’ll receive a “writ of garnishment” from the relevant court or government agency. After that, it’s your responsibility to calculate, withhold, and submit the garnishment to the appropriate creditor or agency until the listed end date or until you’re issued with a Notice of Termination of Wage Garnishment Order.

How much tax comes out of a paycheck?

Taxation amounts vary from employee to employee based on location, hourly rate, total earnings, deductions, benefits, tax bracket, tax filing status, etc. There’s a lot to keep track of. That’s why having an all-in-one payroll solution and support tools to automate the process for you is so valuable.

How much training do I need to start using Roll’s hourly paycheck calculator?

Absolutely none, that’s the best part! Roll is so intuitive, you’ll swear you’ve used it before. Zero training is required. If you know how to text, you know how to run payroll with Roll!

 

Payroll’s No Big Deal with Roll!

 

Say goodbye to clunky forms and static spreadsheets, and say hello to a better way of paying your employees. With Roll by ADP, hassle-free payroll (you know, the kind without the ugh!) is well within your reach.

Roll’s hourly paycheck calculator streamlines seamlessly into your payroll processes to provide one smooth, user-friendly experience, complete with smart features that learn your payroll habits as you go and make each successive payday even more stress-free than the last. Need to calculate salaried employees’ paychecks? Use our annual salary calculator for easy gross-to-net calculations!

Ready to Roll? Learn more about our payroll app for small business and sign up for your free trial today! 


Chat-Based • Artificial Intelligence • Small Business Payroll • Business Basics • Small Business • Payroll
 
Free Trial

Free Trial

Sign up today and enjoy a three-month free trial.