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Income Annualizer

The Income Annualizer is a tool within Scenario Analysis that helps project annual amounts for wage income items, payroll deductions (pre-tax and post-tax), and federal and state tax withholdings based on information from a client’s paystub.

 

Navigate to the Tool

  • In Scenario Analysis, go to the Wages section.


  • Click Use Income Annualizer.





Enter Pay Information

  • Select the Pay Date from the client’s pay stub (not for the week ending 1/2/2026, but the date the check was paid, in this case 1/9/2026).
  • Choose the Pay Frequency (e.g., Weekly, Bi-weekly, Semi-monthly, Monthly).
  • End Date will automatically default to 12/31 of the current calendar year. If the client anticipates the job will end earlier, like due to an expected job change or retirement, enter the anticipated end date instead.
  • The system will automatically calculate the remaining pay periods in the year based on the entries made in the pay date, pay frequency, and end date fields.


Enter Wages, Deductions, and Withholding Data

Once the general information for each job (the pay date, pay frequency, and end date) is entered, to enter individual items for the items described below, be sure to click the + Add Line  link to add income items. For example, at least one line under Gross Wages must be populated to have any Gross Wages items annualized.

Start with Wages:

  • Enter Year-to-Date (YTD) earnings from the pay statement.
  • Enter the Current Pay Period amount.
  • The system will calculate and display the Projected Annual Amount in the right-hand column.
  • If applicable, enter Bonus, Overtime, and Tip income. Overtime income here means only the wage income above and beyond a base amount. 

For example, if the base hourly rate is $20/hr, overtime rate is $30/hr, and 10 hours of overtime need to be entered, enter $10/hr times 10 hours, for $100 overtime pay, and $20/hr times 10 hours, for $200 of base pay. $200 base pay plus $100 of overtime pay, for $300 of total compensation. The $100 is what is eligible for the "No Tax on Overtime" deduction ushered in by OBBBA.

Next, enter amounts for:

  • Pre-tax Deductions - For example, Pre-Tax Savings Deferrals, Pre-Tax Deductions Subject to FICA, and Pre-Tax Deductions Not Subject to FICA can be entered here.
  • Post-tax Deductions (optional) - You may include post-tax deductions for illustrative purposes if you wish, but since post-tax deductions will not impact the tax projection, entries made here will not impact calculations within Holistiplan.
  • Federal and State Tax Withholdings - Any amounts entered here within the Income Annualizer or Wages Worksheet will flow down into the Federal and State Tax Withholding Calculator sections near the bottom of the Scenario Analysis page.


 

Enter a total amount per subcategory of wage income on a single line or break it down into multiple detailed entries within each subcategory. For help determining how to enter particular items from a paystub, check out our article below on entering information from a W-2. While a W-2 is an already annualized version of the data in the Income Annualizer, the concepts are similar.

How Do I Enter Information from a W-2?

Set Maximum Limits (Optional)

  • For applicable categories (e.g., Pre Tax Savings Deferrals), click Max to set a maximum annual limit to avoid projecting amounts that exceed legal limits. Then, check the Set Annual Maximum box, and enter the limit at which you want Holistiplan to stop that deduction from being made to wage income, before clicking Save. Once a max has been set, the Max Applied indicator will show.



Add Additional Jobs (if applicable)

  • If the client has multiple jobs, click Add Job in the lower left section of the Income Annualizer window to enter pay information for each job.
  • Each job will be calculated separately and summarized in the main Wages Worksheet.


Review Summary Totals

  • When returning to the main Wages worksheet, the Income Annualizer will display summary totals across all jobs.

  1. Add Other Income (if applicable)
    If applicable, enter the following income types on the main Wages Worksheet:
  • RSUs (Restricted Stock Units)
  • NQSOs (Non-Qualified Stock Options)

For more information on modeling various forms of equity compensation, check out our article below.

How Do I Handle Equity Compensation (e.g., RSUs, ESPPs, NQSOs, ISOs, etc.) in Scenario Analysis?

  • Deferred Compensation Distributions

Final Outcome

After completing all entries, the tool will provide the projected annual taxable wages, deductions, and withholdings, helping to create a more accurate financial scenario for your client.