Typical witholdings of income
What is the usual % of tax and other contributions for analyst pay?
What is the usual % of tax and other contributions for analyst pay?
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so you usually get 60% of your paycheck. Also, tack onto that however much your 401k contribution is. I get about 50% of my paycheck each pay cycle.
40% withheld? I thought it was closer to 30.
My sign-on bonus was withheld at 40%. My salary is only getting hit about 25% though. If you total your entire salary / taxes and look at what % you paid (effective tax rate I believe is the lingo), you'll probably end up in the 30 - 35% range. 40% is a bit high.
End of the year bonuses get hit with like 50% tax don't they?
Bonuses are not quite taxed at 50%, at least mine wasn't, but it's fairly close.
While analyst base salaries are only taxed 25% at the federal level (http://en.wikipedia.org/wiki/Income_tax_in_the_United_States), state taxes, social security, etc. push this up to at least the 35-40% range.
Compbanker, how did you manage that one?
You can deduct your state income tax from your federal tax.
State income tax: http://en.wikipedia.org/wiki/State_tax_levels_in_the_United_States
NYC also has a 3.85% city income tax.
Is FICA tax separate from federal income tax?
Bonuses are taxed at 40% i think
Man I hate taxes
http://www.dinkytown.net/java/Tax1040.html is a good site to estimate your federal income taxes. Even though we fall in the 25% marginal bracket, we will pay less since our taxed income is gross less standard (or itemized) and personal deductions. The standard deduction is around $5350 (which includes state income deductions) and the personal is $3400. This puts the average tax rate at around 16.8% for 60k.
So 16.8% federal + 6% state + 7.65% employee contributed FICA is a total of 30.45% withheld.
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