A
Additional Medicare Tax
An extra 0.9% Medicare tax on wages above $200,000 (single) that employers begin withholding once you cross that threshold in a year. It is separate from the standard 1.45% Medicare rate.
Used in: Gross-to-Net Calculator
Annual Salary
The total fixed pay you earn in a year before any deductions. It can be converted to an hourly, weekly or monthly figure depending on your working hours and paid weeks.
Used in: Hourly Wage Calculator
B
Bonus
Extra pay on top of regular wages — a signing bonus, annual bonus or commission. The IRS treats most bonuses as "supplemental wages," which are often withheld at a flat rate rather than your normal paycheck rate.
Used in: Bonus Tax Calculator · Explained in Bonuses and Equity guide
E
Effective Tax Rate
The average rate you actually pay across all your income — total tax divided by total income. It is always lower than your top (marginal) bracket because only the income inside each bracket is taxed at that bracket's rate.
Explained in: Marginal vs. Effective Tax · Applied in Gross-to-Net Calculator
F
FICA
The Federal Insurance Contributions Act taxes that fund Social Security and Medicare. Employees pay 6.2% for Social Security (up to the annual wage cap) and 1.45% for Medicare, matched by the employer.
Used in: Gross-to-Net Calculator, Bonus Tax Calculator
FLSA
The Fair Labor Standards Act — the federal law that sets the minimum wage and requires overtime pay (usually 1.5× your regular rate) for non-exempt employees who work more than 40 hours in a week.
Used in: Overtime Calculator · Explained in Overtime Rules guide
G
Gross Pay
Your total earnings before any taxes or deductions are taken out — the "top line" number on your payslip and the salary figure in most job offers.
Used in: Gross-to-Net Calculator · Explained in Understanding Your Paycheck
M
Marginal Tax Rate
The tax rate applied to your next dollar of income — the rate of your highest bracket. It is not the rate you pay on all your income, which is the lower effective rate.
Explained in: Marginal vs. Effective Tax
Medicare Tax
A 1.45% payroll tax on all wages that funds the federal Medicare health program, matched by your employer. High earners pay an extra 0.9% above $200,000.
Used in: Gross-to-Net Calculator
Minimum Wage
The lowest hourly rate an employer may legally pay. The federal floor is $7.25, but many states and cities set higher minimums; the higher one applies.
Explained in: Minimum Wage guide
N
Net Pay (Take-Home Pay)
What actually lands in your bank account — gross pay minus taxes, FICA, retirement contributions and any other deductions.
Used in: Gross-to-Net Calculator · Explained in Understanding Your Paycheck
O
Overtime
Hours worked beyond the standard workweek (usually 40 hours), paid at a premium rate — most commonly time-and-a-half (1.5×) under the FLSA.
Used in: Overtime Calculator · Explained in Overtime Rules guide
P
Pre-Tax Deduction
An amount taken from gross pay before income tax is calculated — such as a traditional 401(k) contribution or many health-insurance premiums. It lowers your taxable income.
Used in: Gross-to-Net Calculator, Bonus Tax Calculator
R
Regular Rate of Pay
Your standard hourly rate — the base used to calculate overtime. For salaried non-exempt workers it is the weekly salary divided by the hours it is meant to cover.
Used in: Overtime Calculator, Hourly Wage Calculator
Retirement Contribution (401k)
Money you set aside from your paycheck into a retirement account. Traditional contributions are pre-tax (lowering taxable income now); Roth contributions are after-tax.
Explained in: Retirement Contributions guide · Applied in Gross-to-Net Calculator
S
Social Security Tax
A 6.2% payroll tax on wages up to an annual cap that funds Social Security retirement and disability benefits, matched by your employer.
Used in: Gross-to-Net Calculator
Supplemental Wages
Pay outside your regular salary — bonuses, commissions, severance. The IRS lets employers withhold these at a flat rate (commonly 22%, or 37% above $1 million) instead of your normal paycheck rate.
Used in: Bonus Tax Calculator
T
Take-Home Pay
See Net Pay — the amount left after all taxes and deductions.
Used in: Gross-to-Net Calculator
Time-and-a-Half
The most common overtime premium: 1.5× your regular hourly rate for eligible hours over 40 in a week.
Used in: Overtime Calculator
W
Withholding
The portion of each paycheck your employer sends to the IRS and state on your behalf, based on your W-4. It is an estimate — you settle up at tax time via a refund or a bill.
Used in: Gross-to-Net Calculator · Explained in Payroll Taxes guide