California paycheck calculator employers use for hourly paychecks
The California paycheck calculator available here simplifies the process of verifying your calculations for hourly employees and making sure your salaried team members receive the correct take-home pay. Plus, if you reward your staff with bonuses for excellent work, you might want to utilize the California bonus tax calculator next.
Calculating Payroll in California: Hourly vs. Salaried Employees
The California paycheck calculator available here simplifies the process of verifying your calculations for hourly employees and making sure your salaried team members receive the correct take-home pay. Plus, if you reward your staff with bonuses for excellent work, you might want to utilize the California bonus tax calculator next.
How Payroll Differs for Hourly and Salaried Staff
Ultimately, the steps involved in processing payroll remain quite similar for any employee type. You start with their gross wages (the amount of money earned during a pay period) and deduct local, state, and federal payroll taxes, along with any other required payroll deductions for things like health benefits, retirement contributions, or garnishments.
The method of moving from gross wages to net wages (or take-home pay) doesn’t change much. The key distinction between payroll for hourly and salaried employees lies in how you calculate those gross wages initially.
Gross Wages for Hourly Workers
For employees paid based on the time they work, you determine their gross wages by multiplying the number of hours they worked in the pay period by their hourly pay rate.
While generally straightforward, it’s vital to remember that many states have overtime laws that mandate an increased pay rate if an employee exceeds a specific number of hours in a day (typically 8 hours) or a week (usually 40 hours). Be sure to factor in these rules when calculating paychecks for hourly staff.
Gross Wages for Salaried Workers
For individuals who receive an annual salary, their gross pay is calculated by dividing the annual salary by the total number of pay periods in a year.3 For instance, if an employee’s annual salary is $100,000, their gross wages would be as follows for various 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 |
For a more comprehensive look at selecting different pay schedules, you can refer to a detailed examination of the issue.
A Note on Payroll Providers
If you’re seeking a new solution to pay your employees but aren’t sure where to begin, beyond offers information to help you get started.
Determining Who is Salaried vs. Hourly
Employers have some latitude when initially deciding whether a new hire will be paid by the hour or receive a salary. Typically, employees whose hours are consistent and those at higher compensation levels are offered a salary. Conversely, workers at lower compensation levels who have more variable hours usually receive an hourly paycheck.
Regardless of your chosen compensation method, you must follow certain regulations—the most important being the rules for exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In short, the FLSA states that employees must be eligible for overtime pay when they work over 40 hours in a week, unless they are classified as “exempt” and meet one of these criteria:
– They are an executive.
– They provide skilled professional services.
– They hold administrative or management responsibilities.
– They are highly compensated (earning over $151,164 per year in 2025).
– They are a computer programmer or analyst.
– They have an outside sales role.
There are also several minor exceptions. For more information, examine the classification of exempt and non-exempt employees or consult with an employment or tax professional.
From Gross Wages to the Final Paycheck
Once the gross wages are established, the next step is calculating the final payroll by withholding federal, state, and local payroll taxes and applying any other relevant deductions. This fundamental process remains the same for all employees, whether they are salaried or hourly. If you wish to dive into the technical details, you can find more information on how to calculate payroll taxes.
Finished using the paycheck calculator that California employers rely on? Here are more state resources:
State Minimum Wage: $16.50 in 2025.
Separate Minimum Wage: $20.00 per hour, applicable only to fast-food workers.
Is Workers’ Comp Required? Yes, for employers with one or more employees. See the complete guide to California workers’ compensation insurance.
New Hire Reporting Required? Yes.
2025 SUI Rate (State Unemployment Insurance):
– Taxable wage base: $7,000
– Rates range from 1.5% to 6.2%
– Tax rate for new employees: 3.4%
This article (and the mentioned California 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.