New Jersey paycheck calculator employers use for hourly paychecks
The New Jersey paycheck calculator at the top of this page makes it easy to verify your calculations for hourly staff and ensure they receive the correct net pay. In addition to simply crunching the numbers for you, the information below helps employers understand how writing paychecks may differ for employees who receive a salary versus those who are paid hourly.
The Key Difference in Payroll Processing
The core act of processing payroll is quite consistent regardless of the employee type. You begin with the employee’s gross wages (the amount of money they earned in the pay period) and deduct federal, state, and local payroll taxes. Any additional payroll deductions for items such as health benefits, retirement contributions, or garnishments are also withheld.
The journey from gross wages to net wages (the take-home pay) remains largely the same. The primary distinction between payroll for hourly and salaried employees lies in the fundamental calculation of those gross wages. Also, if you are considering an upgrade to the tools you use when paying employees, our guide to switching payroll providers mid-year is a useful read.
Determining Gross Wages
For Hourly Employees
For workers whose pay is based on the time they put in, you calculate their gross wages by multiplying the total hours worked during the pay period by their hourly pay rate.
While this is generally straightforward, numerous states have overtime laws that can increase an employee’s rate of pay if they work over a specific number of hours in a day (typically 8 hours) or in a week (generally 40 hours). It is important to account for these nuances when preparing paychecks for hourly workers.
For Salaried Employees
For employees who receive a fixed annual salary, gross pay is calculated by dividing their annual salary by the number of pay periods in the year. For instance, if an employee earns an annual salary of $100,000, their gross wages would be as follows for different pay schedules (assuming no other pre-tax deductions):
| Pay Schedule | Gross Wages (based on $100k salary) |
| Weekly (52 pay periods/year) | $1,923.08 |
| Bi-Weekly (26 pay periods/year) | $3,846.15 |
| Bi-Monthly (24 pay periods/year) | $4,166.67 |
| Monthly (12 pay periods/year) | $8,333.33 |
Who Qualifies as Salaried vs. Hourly?
Employers have some flexibility when hiring staff to decide whether to pay an hourly wage or a salary. Typically, a salary is offered to employees whose work hours are fixed (or consistent), and those with higher compensation levels. Conversely, employees at lower compensation levels whose hours are more variable generally receive an hourly paycheck.
Regardless of the chosen method of compensation, several rules must be followed, most notably the rules governing exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In short, the FLSA states that employees must be entitled to overtime pay when they work over 40 hours in a week, unless they are classified as “exempt” and meet one of these categories:
– They are an executive
– They offer skilled professional services
– They have administrative or management responsibilities
– They are highly compensated (earning more than $151,164 per year in 2025)
– They are a computer programmer or analyst
– They have an outside sales role
There are a number of other minor exceptions. For a closer examination of the classification of exempt and non-exempt employees or if you have further questions, consult an employment or tax professional.
From Gross Wages to Final Paycheck
Once you have successfully calculated gross wages, the next step is to calculate the final payroll by withholding federal, state, and local payroll taxes and applying any other deductions that may be relevant to the employee. This process essentially operates the same for all employees, regardless of whether they are salaried or hourly. More information is available on how calculating payroll taxes works if you wish to delve into the specifics.
Employer Resources in New Jersey
Finished using the New Jersey paycheck calculator employers use for payroll? Here are more resources you can use:
State Minimum Wage: In 2025, the minimum wage is $15.49 per hour. It rises to $15.92 in 2026.
Is Workers’ Comp Required? In most cases, this is required. Learn more in our guide to NJ workers’ compensation.
New Hire Reporting Required? Yes, employers need to report new hires to the state.
2025 SUI Rate (State Unemployment Insurance):
– Taxable Wage Base: $43,300
– Current Rates Range: from 0.6% to 6.4% (Starting 7/1/25, the UI contribution rate for employers will be reduced to a range of 0.5 percent to 5.8 percent).
– Tax Rate for New Employees: 3.1%
This article (and the mentioned paycheck calculator tool) is provided for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation and final payroll numbers.