Inspired by the “when are you paid” thread, I did some math to find out how much of my “official salary” I actually got per paycheck/year, and I was very dissapointed with the result.
So, after taxes, benefits, 401(k)/403(b), and any other voluntary or non-voluntary deductions (maybe you have to pay for parking at work (like I do…), etc…) how much of your yearly salary, as a percentage, do you see?
And for the record, try not to include things that aren’t taken out by your employer or the government. I say count 401(k) and 403(b), since they are usually offered through work and can have employer contributions, but if you then put another $100 or $200 a month into an IRA or savings account, don’t include that…or at least make a note of it, I guess.
Personally, I have the standard benefits (health, dental, life, disability, 403(b),) as well as having to pay for a parking permit. I take home about 72% of what my official yearly salary was advertised/offered as.
My gross salary less (i) Federal, state, unemployment, medicare, and social security tax, (ii) medical, dental, vision, FSA, and (iii) 401(k) leaves me with a net of 62.5%.
Just deducting (i) and (ii), I take home 72.5%.
I also contribute to an employee stock purchase plan from my net.
I take home 53%, but I am paying extra withholding because my husband works for his LLC and there is no withholding taken from his pay (and all of our health insurance and retirement saving comes out of my paycheck). If I figure the deductions as a fraction of both of our paychecks, it comes out to 68%. (We live in a state with no income tax.)
For my last full-time job (my only, since graduating uni) I used to get about 2/3 of it, after taxes, compulsory pension contributions and student loan repayments.
Wow, I thought a big chunky of my salary was going away to taxes but that’s nothing compared to you all…
(From Sweden) We have a standard 33% tax rate – I guess it would be higher if my salary was a lot higher but I’m not making that much. I never see anything itemized like I did when I worked in the US so I have no idea what percentage is going to healthcare, etc. I also get about 12% added back on because I don’t work regular hours so it’s a kind of replacement holiday pay.
Though your employer pays payroll taxes of roughly 31% (arbetsgivaravgift) that among other things go to your pension (10% of it). The rest goes to finance health insurance, parental leave, disability insurance etc.
So if you count the amount of money your employer actually pays for you to what you get after taxes the difference is much larger.
Looking at my year-end paycheck stub from last year, I netted 59%, with 28.5% withheld for various taxes. The rest were for health benefits and 401k. Because of non-earned income, I always end up with more money going to taxes come April 15.
I net 66.32% of my gross, after taxes and 401k deductions. Not sure what the break out is, though, and not willing to look for it. One reason we might be higher than average is the absence of state and local income tax here.
~87% for everything - in Australia. Gee, I’m paying so much more tax and other withholdings than I did in the States.
Oh, wait, I’m not…my take home pay when I lived in the States was ~ 82%, including all taxes and health insurance, and etc. And that was Florida, a state with no state income tax.
So in this land of public health care - I pay less.
I run a small business so my raw income minus what it costs to run the business minus what I need for my own tax, pension, health insurance, life insurance runs to about 50% left over. BUT some of that 50% I need to invest in the business to make it more attractive to customers…
So somewhere between 40 and 50% depending on the month and one month a year (just after I pay my tax for the previous year and have just closed the books for the year) it’s ALL MINE!!! I count that as a bonus.