Paying taxes is something that every American hates to do.  Filling out all of those complicated forms and finding an accountant or some online tax software to help us get rid of a percentage of our earnings ever year is both depressing and difficult.  We navigate our way through words like “deductions” and “exemptions” only to find ourselves even more confused than when we started.  Things can be even more complicated for those that are self employed.

Self employment offers many advantages.  You get to be your own boss and, if working from home, you get to do all of your work while sitting in your pajamas and drinking a cup of coffee.  However, when it comes to calculating and paying your own taxes, things can get a little tricky.  Fortunately for those of us who are self employed, there is an easy and efficient way to calculate taxes for ourselves and for our employees by using an online payroll tax calculator.

            The payroll tax calculator is easily accessible through different financial websites.  If your personal financial institution doesn't have one, you can find one through any search engine by simply typing in “payroll tax calculator.”  Once you arrive at the site, the instructions to use the payroll tax calculator are fairly straight forward.  The steps are as follows:

1.  Put in your tax year and state.
2. Enter your W4 information to include your exemption from withholding, marital status, dependents and any additional withholdings.
3. Put in your salary and the payroll tax calculator will give you your gross earnings.
4. Next you put in any non tax deductions such as health insurance deductions and the payroll tax calculator will give you your total taxable earnings.
5. Next you put in your federal and state withholdings along with medicare taxes and social security taxes and the payroll tax calculator will give you your total withheld taxes and deductions.
6. Last, type in any miscellaneous nonwage expenses and any adjustments that you have. At the end, the payroll tax calculator will give you're your net pay and tell you your total amount of deductions and expenses. 

Paying taxes is never going to be fun but it can be simple.  The payroll tax calculator offers an easy and FREE way to keep on top of your income taxes so that you don't find yourself having a face to face meeting with an IRS agent.