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you might be wondering how do I calculate a paycheck for my employees well wonder no more because we got you covered hi this is Leslie at gusto and today were gonna talk about how to calculate a paycheck first things first its a great idea to check with your CPA or use an online software provider like gussto it just makes things easy for you and helps you stay compliant were gonna start with a simple formula to calculate someones net pay and that pays just a fancy way of saying the money that your employees take home so start out with gross pay subtract any pre-tax deductions subtract any employee taxes subtract out post tax deduction and there you have it youre left with your employees net pay first off calculate gross pay this is the big number so for hourly employees youre gonna see how many hours they worked in the pay period I multiply it by their hourly rate for salaried people its usually the same every pay period and its very yearly salary divided number to subtract out