To clarify—in the US, FICA (Social Security + Medicare) charged a %7.65 “employer contribution” that was not counted in your stated wage, as well as a %7.65 “employee contribution” that was counted in your stated wage.
Right-o. This can make it very confusing to compare wages between countries.
The actual cost to the employer, assuming they are providing no benefits, is your stated wage plus 7.65% for most income levels. The amount the employee gets is the employer cost, minus 7.65% (down to the stated wage), minus another 7.65% (the employee contribution), minus any local, state, and federal income taxes.
The tax band you are in is based on your adjusted gross income, but everyone gets to knock at least $5800 off for the standard deduction so it’s not even your stated wage.
To clarify—in the US, FICA (Social Security + Medicare) charged a %7.65 “employer contribution” that was not counted in your stated wage, as well as a %7.65 “employee contribution” that was counted in your stated wage.
See also: wikipedia#Taxation)
If you earn money as “self-employed”, which I did for a few years, then you get to pay both.
Right-o. This can make it very confusing to compare wages between countries.
The actual cost to the employer, assuming they are providing no benefits, is your stated wage plus 7.65% for most income levels. The amount the employee gets is the employer cost, minus 7.65% (down to the stated wage), minus another 7.65% (the employee contribution), minus any local, state, and federal income taxes.
The tax band you are in is based on your adjusted gross income, but everyone gets to knock at least $5800 off for the standard deduction so it’s not even your stated wage.