Some taxes, such as Sales Tax and State Unemployment Tax were not included. They might be added later. If you were to live in Texas, there would not be a State Income tax; if you lived in Alaska the State would pay you instead of you paying State Income Tax; if you were living in California or New York, the State Income Tax might be a bit higher (8-9%).
IRS Publication 15 can be downloaded from https://www.irs.gov/pub/irs-pdf/p15.pdf
US Income Taxes for year 2019 |
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| Example cases comparing taxes on general laborer wages and engineering wages | |||
| Married $36,000 / year $3,000/month |
Married $200,000/year $16,667/month |
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Comes out of your payroll and is shown on your pay stub |
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| Federal Income Tax – $0->$983 (see note below) | 0% | – | – |
| Federal Income Tax – $983->$2,600 (10%) | 10% | $161.70 | $161.70 |
| Federal Income Tax – $2,600->$7,563 (12%) | 12% | $209.70 | $595.56 |
| Federal Income Tax – $7,563->$15,017 (22%) | 22% | – | $1,639.88 |
| Federal Income Tax – $15,017->$27,771 (24%) | 24% | – | $2,035.88 |
| Federal Income Tax – $27,771-.$35,000 (32%) | 32% | – | – |
| Federal Income Tax – $35,000->$52,013 (35%) | 35% | – | – |
| Federal Income Tax – $52,013 and up (37%) | 37% | – | – |
| Indiana State Income Tax (3.23%) | 3.23% | $96.90 | $538.34 |
| Federal Insurance Contributions Act (FICA) on paystub | 6.20% | $186.00 | $1,033.35 |
| MEDICARE Tax on paystub | 1.45% | $43.50 | $241.67 |
| Additional Medicare Tax on paystub | 0.90% | – | $150.00 |
| Total taxes you are told about on your pay stub | $697.80 | $6,396.39 | |
| Amount you were told you would be paid | $3,000.00 | $16,667.00 | |
| Amount you were really paid | $2,302.20 | $10,270.61 | |
| Percent of promised amount you were really paid | 76.74% | 61.62% | |
Comes out of your payroll money without your knowing |
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| Federal Unemployment Tax | 6% | $180.00 | $1,000.02 |
| Federal Insurance Contributions Act (FICA) (yes, again) | 6.20% | $186.00 | $1,033.35 |
| MEDICARE Tax (yes, again) | 1.45% | $43.50 | $241.67 |
| Total Taxes You were not told about | $409.50 | $2,275.05 | |
| Amount you would have been paid without the hidden taxes | $2,711.70 | $12,545.65 | |
| NOTES: Federal Income Tax is charged based upon how much money is made, not a flat percentage for everyone. Those who earn more money pay ever increasing percentages as Federal Income Tax. The brackets shown here are from Pub 15, page 46, Table 4 MONTHLY Payroll Period. | |||