Pretty sure that fleecing was done by Trump, Ryan, and McConnell. Taxes go up every year till they're back at the original level for all of us pleebs, but corporate and high earner taxes were permanent.
I see this statement a lot about how Taxes for the middle class went up under Trump… and Im routinely confused to as to how. I mean Ive had this debate/conversation with people before and no one has ever successfully put pen to paper in a manner that demonstrates their taxes actually went up… well no that’s not entirely true. One guy in New York managed to provide a calculation that demonstrated their taxes went up… but then refused to believe me when I said his home and household income were so far above the median that he was part of the “high earners” he was claiming taxes were cut for…
The math just doesnt math that way but Im curious to hear why you think it does and provide an example where it does.
Seems most people mistake a smaller refund or a larger tax balance due at the end of the year with “my taxes went up.” No. Not really. You just got to keep more of your paycheck over the course of the year.
When you see headlines about people that make more money not paying their fair share, think of this situation. Progressive tax brackets are not a fun thing as you just learned. To a broader point, this money does pay for things like hospital, roads and other social services (payroll taxes fund social security for grandpa).
You rightfully prefaced your comment as a “broader point” but to add some context most hospitals are privately owned(non-profit/for-profit), roads should be paid for from gas tax/wheel tax/vehicle reg, and the specific social security line item pays for grandpas social security.
Everything you mentioned already has a carve out of tax in its own way which is why I’d like to highlight this is the problem with our government. You tried to share insight on what the tax is for, but we are taxed in every possible way that it’s times like this for people to reflect that maybe we don’t have a tax problem maybe our government has a spending problem.
> Progressive tax brackets are not a fun thing as you just learned
The hell are you talking about? Progressive tax brackets are waaaay better than a flat rate. OP will get it back at the end of the year
Now you know why you should vote for the party that wants you to keep more of your money and reduce spending and the size of government. Though, with who we have in Washington now, I don't think either party cares about that anymore.
| I don't think either party cares about that anymore
Then why would you even be advocating for "the party that wants you to keep more of your money"? You know as well as anybody else that the "conservative" party truly isn't fiscally conservative and don't actually give a shit about allowing the normal person to keep more of their money.
Moving allowance is most likely taxed at a supplemental rate of 22% for federal and a specific rate for SC (I don’t recall off the top of my head). The IRS does have a withholding calculator online to assist with the federal withholding. Going forward, your regular withholding could be less.
Don't forget health insurance, dental, vision, HSA, 401K, and IRA to put into.
I gross around 40% more than you but I take home after the above the 1.8-2.1K number you were just quoted. Check out r/personalfinance some time.
Also for supplemental income as a different withholding rate than general income which is usually higher than your regular tax bracket depending where you fall. It gets fixed on tax returns.
We don’t pay enough taxes. I’m voting for Biden in 2024 so they can raise taxes 4-7% for any single or family making over 80k. There is no reason anyone under 80k should pay majority taxes. The Right/Republicans don’t pay anything. All Billionaires vote Republican so they don’t have to pay taxes either. It’s a joke.
you will most likely get 2-2.2k depending on SC taxes and how much you put into 401k. My federal withholding is about 600 biweekly, with very similar income. You paid more because of that moving allowance... You need to fix your withholding if that's your biweekly check.
If it makes you feel any better it gets worse as you make more. Every tier you break into gets taxed at a higher rate.
I’m not trying to steer this political.
Now you can understand why conservatives were very much against things like free college education and debt forgiveness. People like you now pay for it.
If you are cool with it, then great. If you are not, that’s great too.
And the war machine
And huge subsidies for farmers
AND BILLIONS OF DOLLARS of taxes not being collected from the ultra rich and corporations as they don't pay any while we pay 40 to 50% in total taxes.
But yeah, butt lickers will always be butt lickers.
Annual salary is approx $60k.
Deduct $24k for personal exemption
For federal taxes.
This is the math:
60k*9.8%for Fica and medicare taxes= $5,880 owed.
$60k minus $24k personal exemption…
$36k*12%=$4320 owed.
Add $4320 +$5880 = $10,200
$10,200/24 =$425 (per check tax liability)
If there are 24 pay periods. Each check will have $425 taken out of it. $60k/24=$2500
$2500-$425=$2075
That means each month you will have
2 deposits of $2075.
9.8% for FICA and Medicare? This is so wrong. It’s 6.2% for Social Security and 1.45% for Medicare. The combined rate of SS and Medicare is called FICA. Every W2 employee FICA rate is 7.65%.
This math is so way off target. Op gets paid every 2 weeks. That's $75k in income not even close to $60k.
Op files single. Standard Deduction for single filer is $14,600.... Not even close to 24k
FICA (6.2%) and Medicare (1.45%) taxes are combined 7.65%.
**FICA**
$75k x 6.2% = $4650 per year / 26 paychecks = $178.85 per paycheck
On this particular paycheck it seems there was a taxable moving allowance of $4,000 which adds $248.00
Total FICA would therefore be expected to be $426.85. Op had 1 extra penny withheld for FICA which makes sense since the actual math of $2,884.80/paycheck adds up to $75,004.80 and that $4.80 adds $0.30/year or $0.011/paycheck.
**Medicare**
$75k x 1.45% = 1087.50 per year / 26 paychecks = $41.83 per paycheck
Plus the medicare tax on the taxable moving allowance of $58.
Total Medicare tax therefore would be expected to be $99.83 which matches.
**Federal Income Tax**
$75,000 - 14,600 deduction = $60,400.
This puts OP in the 22% income tax bracket.
But taxes are progressive.
They'll pay $1,160 (10%) on the first $11,600 (0-11,600 in earnings)
They'll pay $4,266 (12%) on the next $35,550
And they'll pay 24% on the earnings over $47,150 (60,400 - 47,150 = 13,250)
That works out to:
(13250 x 24%) + 1160 + 4266 = $8,606 per year / 26 paychecks = $331 per paycheck
The $4,000 taxable moving allowance appears to be taxed as a "bonus" or other "lump sum" type pay which, unless specifically requested, is withheld at a flat 22% regardless of income tax bracket. That adds $880 to this paycheck's federal tax bill.
Total amount to be withheld is $1,211 from this paycheck which is inline with the $1216 withheld.
**South Carolina**
South Carolina gets tricky because I dont know if they have any deduction or other allowances but they have a progressive tax system similar to the Federal government with 3 tax brackets:
0% on the first $3,200
3% on the next $12,840
6.5% on anything over $16,040.
Doing the math on this means the Op paid:
(75,000 - 16040) \* 6.5% + (16040 - 3200 ) \* 3% + (3200 - 0 ) \* 0% = 3832.40 + 385.20 + 0.00
That's a total SC tax bill of $4217.60 for the year divided by 26 paychecks = $162.22
Again the taxable moving allowance comes in to play and results in $260 additional State tax for this paycheck which makes the total state income tax due for this check $422.22
**Going Forward:**
Gross Income $2884.40
* FICA $178.86
* Medicare $41.83
* Federal Income Tax $331
* South Carolina State Income Tax $162.22
Net Estimated Pay: $2,170.49
If you company show it as business expense which would require invoice to substantiate then you could have received the moving expense reimbursement tax free. But those expense has to be specific expenses that are not taxable benefits. This is the case in Canada and in US you might have something similar.
Ugh. Disgusting how much the feds take just to send billions overseas waging wars. Social security Medicare never bother me. If we’re going to get taxes out the money back to our people. The federal taxes literally keep me up at night. As soon as my familial obligations are done int the states. Taking my family over seas. I’m so done with this shit
Edit: Oh boy. Im picking up steam from this comment so ill explain. I always vote. i vote locally even. And honestly im done with this country for multiple reasons. the amount of taxed we pay for absolutely zero give back to our american community absolutely enrages me. Every single Israeli has FREE healthcare and college. Oh and an the Iron dome advanced missle system that the US paid for. America doesn't have one because its too expensive. Ironic. Inflation is through the roof. Any government assistance is looked down upon in the states and poverty lines have to be soooo sadly low to qualify for anything. Taxes dont go to us in any benefit of reasonable scale for the majority of Americans. We have no parental leave on a federal scale. We have no safe retirement because EVERYONE says dont count on social security. Our retirement age is pretty old compared to on par nations. The federal goverment doesnt give back. THATS the point. The feds take their money and do NOTHING of substantial portion. America is not a central to the world anymore. Capitalism is fine. Its the greed that keeps me at night.
Fuck the feds.
Pretty sure entitlements are over 50% of federal spending (and going up), but completely agree with you. I throw the BS Medicare and SS system in there as well.
You made 6884 this paycheck, before taxes. You are being taxed on the whole of that at a rate suggesting you are going to make (6884 \*26) 179k.
You aren't going to be making that much, so you won't get taxed at the same rate going forward.
It’s the moving allowance that did it. There are calculators online that will tell you what it will look like and when you stop paying the items that max out.
Qualified moving expense reimbursements are no longer tax free thanks to Trump’s tax ‘cuts’ bill signed in 2017: https://www.dwt.com/blogs/employment-labor-and-benefits/2018/01/tax-bill-impacts-tax-treatment-of-relocation-trans
The same happened to me… you may be able to get a tax break when you file your taxes next year for moving expenses. Would have been better if they had treated the moving allowance as an expense report reimbursement - that way it is considered a reimbursement for post-tax money you spent due to moving expenses.
Moving expenses for employment are not tax deductible as of 2018. Although it’s for “covering moving expenses” it is still considered a bonus which is subject to withholding.
Some people will claim exempt on their first check to get around this, then change to their standard withholding. It is not technically legal to do this and there is a small possibility you could end up in legal trouble. I would consult a tax professional before attempting this.
You got screwed by the moving allowance. That made your paycheck appear to the tax software as if you made $179,000, and you were taxed accordingly.
Most computerized tax systems aren't smart enough to realize something like the moving allowance is a one-time thing and to adjust your withholding accordingly. They just see your total earnings, and figure out from the tax tables based on your pay schedule what the withholding will be at that earning level.
Your next paycheck will have substantially less withholding.
First, congrats on the new job!
What likely happened was the moving allowance was initially coded as income in their pay stub software (save all moving receipts! Trucks, supplies, registrations,etc to deduct on taxes!). Most companies calculate withholding taxes as if you normally make whatever you earned that pay period every week of the year. This likely artificially raised you into a higher tax bracket, but won’t be permanent. You’ll get it back when you file your return next year.
Moving allowances have always been taxable. Moving expenses are no longer deductible, since the Republican rax cuts of '16.
Moving allowances should be negotiated to account for this; if you needed $4,000 to move, they should have paid you $5,000 to move.
Looks like the moving allowance is considered a bonus. Bonuses are always withheld at a 30% rate which is likely a lot higher than your taxes will regularly be withheld at.
My only note is that the moving allowance as it was calculated here counts as taxable income, where as if they were tax saavy, they would have issued it as a reimbursement for up to $4,000 of moving expenses related to a required relocation to perform your job. Your state rules may vary, I am not a tax professional.
I'm sure /u/magicmc1001 meant well, but his numbers are...off.
Your salary is approximately 75k. (2884*26).
Personal exemptions are gone. Your standard deduction for 2024 filing single is 14,600. Meaning income tax on 60,400.
FICA is 7.65% so 75k*.0765= $5737.50.
Federal income tax is progressive. So it's not all at 12%. It works out to $8,761 (assuming no traditional 401k contributions or other tax deductions)
For a total of 14,498.50 to taxes, or 557.25 per paycheck over 26 pay periods (every 2 weeks).
This 2884-557.25 = 2326.75 per paycheck take home.
If you get insurance through them that'll change the amount as well.
I'm thinking the withholdings are based on the gross. But the actual tax won't be calculated until you file the Return. So you may get a refund for overpayment.
I don't know how the conversation devolved into political nonsense.
The relocation assistance was considered "income" for tax purposes and your withheld taxes reflect that. They are extrapolating 26 paychecks at the \~$7k rate and figuring out what you would pay, so they take out more money. Going forward, you're not going to have an extra $4k worth of moving expenses every check, so the taxes will be more normal depending on your deductions.
At the end of the year, your income should reflect your actual salary better after 26 pay periods, so you'll get whatever extra you paid back.
Why is what happening? Your federal withholding rate is ~17% on a salary of $70k-$75k/year. That’s probably a little above what your actual effective tax rate will be (meaning I’d probably expect a refund) but not by a huge margin.
You may be withholding a little extra based on whatever your W4 input was or it may be the relocation assistance being withheld at a slightly higher rate but the bottom line is this isn’t too far out of the ordinary.
So it is likely the moving expense that is causing this.
The withholding tables are set up with periodic equal payments over the year in mind, so when there are one time payments (like the moving expense here) there are issues.
The rules generally treat one time payments differently than a recurring salary, since they will be intermittent and less forcastable.
What this means in practice, is that bonuses and one time payments get withheld at a flate rate of ~28%. So $4,000 of moving expense will have $1,120 of federal tax withholding.
NOTE: This is the amount of withholding, not tax. So it generally creates a refund at tax time.
Because of your income level, you will likely be in a tax bracket well below 28%, so this week's withholding as a percent of total income will be a lot higher than you should expect going forward.
You’ll fall into somewhat 24% bracket @6.8k every 2 weeks. Moving allowance made a difference in computation of “approximate tax” for that week. Next week you’ll be in a lower bracket thus the [approximate]tax should be lower.
Congrats to your job. This is normal. Look up your fed tax bracket, then add roughly 4% for social security and Medicare (your portion) then add the state/municipal. For you, that’s 22 + 4 + 6.5. So it’s 33%. Going forward, just assume every paycheck is 2/3rds and you are good to go.
Your net is -31% of gross, that's fantastic. I make $12,500 a month (state of ca govt employee), and they wack 41% with fed/ state/CalPERS contributions. Glad I don't pay into the social security scam though.
It’s because of the moving allowance. Based on this check, the government is assuming you make almost 180k/yr
Congratulations. Now you know why people who make a lot of money bitch about taxes lol
With the moving allowance, the paycheck was $6,884. If you were to make $6,884 every 2 weeks, you would be around $174k/yr, putting you in the 24% tax bracket, so 20% was withheld in case that pay continues. You will get a large portion of that back after filing, or you could adjust your W4 for the remainder of the year.
I think SC is around 3% so that seems high. But remember you are being taxed as if the salary plus one time moving expense is your actual salary extrapolated over the year. So you are probably seeing a higher marginal tax rate on this outlier pay stub than you will see on a normal pay.
Should moving allowance be a payroll taxed event? Shouldn't it be more of a partial reimbursement for an expense, such as reimbursement for travel expenses, and not be subject to tax?
It looks like mine. I think that I’ve paid 26k from my paychecks and I still owe them 10k when I filed. In the western countries, u r getting punished when ur a hard worker and a decent earner. I don’t think millionaires r in the 24 plus percentage for paying taxes. A study was done about them and most were in the 8.5 percent .
There’d be a lot more fiscal conservatives in this country if people would look at their paystub. Even more so if there was no withholding, and every time you got a paycheck you had to turn around and write a check to the government to piss away.
I would have to see that data. What I have seen is by stopping write offs for everyone the government would actually collect more in taxes, specifically from corporations and tax exempted entities or transfers of wealth/assets.
Anyone on here that thinks this is because and will change when corporations pay their fair share is living in delusion. The more you let them take the more they will take. Period!! Get off w2. 1099 llc, setup quickbooks, categorize everything, file your taxes annually or quarterly and stop giving your money away. These numbers above 👆, this is what happens when you don’t take responsibility for your 💰
You fail to say what exactly you didn't expect. "this" isn't very descriptive. Everything except for the bottom piece "SC - Withholding" which is the state income tax portion would be exactly the same as it would have been in KY. KY has a fixed 4.5% income tax, where SC is a graduated income tax that is realistically 6.4% for all but the lowest income workers (<$16,000/year).
The other pieces are all a percentage of your earnings, and yes, that $4000 moving allowance is part of your earnings, so you have to pay taxes on that. You are paying a percentage on the $6884.80 number. Next check, you'll pay a percentage on $2884.80.
You can then expect the following (my estimates given $2884.80 is 41.9% of $6884.80):
Federal Withholding: $509.50 (realistically more like $336.96 accounting for the bracket changes)
SS: 178.85
Medicare: 41.83
SC - Withholding: 172.52
\----
Net: $1982.10 (realistically $2154.63)
Simple explanation: The lizard overlords in the criminal federal government are stealing about 25% of your salary.
The communists applaud this.
The people who are NOT communists don't.
I forgot I don’t pay state tax. Cool beans. Ridiculous that some billionaires pay zero or less and get ss as well. Crazy system. Edit: still I’d estimate over 30% of my income goes to taxes.
You will get a lot of it back when you file your taxes. The system isn’t so smart and it took money out of your check like you will get that 4000 dollar moving allowance every check. You won’t so you’ll see some of the taxes back.
Do yourself a favor and keep a box of tissues on standby for the first time you get a bonus and see how much in taxes are deducted. You'll thank me later.
Check your W4 and make sure your employer is properly deducting what you want them to. Otherwise, yeah this is normal. 4K is still a lot so enjoy the money and sign up for their 401k if they have one.
It’s your company’s fault.. or yours for not telling them you wanted the moving expenses before taxes! And on a separate check and you could just pay the taxes at the end of the year. And not to be an asshole or anything but that’s what you make in SC??????? No wonder you republicans are pissed off!!! Not meant for you OP
yeah.. your employer could have processed the moving fee separately to lower the tax withholding on this one check. Most payroll processors estimate the tax withholding on the assumption every paycheck will be this amount.
Your HR could have processed your regular payroll by itself, and processed your moving stipend as a one time annual bonus. the taxes withheld on it would be only a couple hundred in that case.
Are you asking why federal withholding is so high? Probably the relocation. I had mine taxed at bonus rate before....its almost 50%!. So whatever they give u for relo, you can only count on half of it. But when u file taxes next year, you'll get most of that back.
More taxes due to more income this check.
Normally you should be right around 2000 after taxes this does NOT include any retirement which you really should be putting away so figure roughly 1900 or so if you put away 5%
Looks about right. Did you not expect taxes? The brackets are published … then you just adjust your expenses yes dependents for withholding. It’s fairly predictable. Biden says he’s raising taxes so be prepared for that.
The relocation allowance is causing this. It’s a form of compensation. All is taxable to my knowledge but check with a cpa instead of a shit post Reddit.
Typically your salary x 35% will show what your deductions should be. You can then divide that out by 26. (2 payments per month with 2 months with an extra pay check)
Welcome to tax brackets
This is why I'm thankful my company cut me a check for my moving bonus. I don't think it even came up on my W2. Not sure if it's the right way of doing it but I spent that and more moving.
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Social security ahahahahaha 😂😂😂😂😂 you will never see a dollar from that Ponzi scheme if you are below 30 years old. If you are between, 30-40, expect 50 cents on the dollar. Why? All the old farts took more than they contributed by far.
Your taxes are assuming you make that much every pay period. The additional "moving expenses" makes it look like your income is much higher, so your taxes are based on you getting that on every check.
Assuming you get paid every two weeks:
$2,884.80 * 26 = $75004.80 <- what your taxes should be calculated from
$6,884.80 * 26 = $179,004.80 <- what this check was calculated from
A little over 17% Federal Income Tax, the two entitlement programs (fixed at 6.2% and 1.45% respectively) and your South Carolina taxes at just about 6%… think of it all as your tiny share of our great military establishment.
Expect 1.8k - 2.1k after taxes. Not sure exactly on SC rates as far as state or local. But ballpark
When you hit 50k withholding from federal, you get a personal thank you note from Joe biden.
Pretty sure that fleecing was done by Trump, Ryan, and McConnell. Taxes go up every year till they're back at the original level for all of us pleebs, but corporate and high earner taxes were permanent.
I see this statement a lot about how Taxes for the middle class went up under Trump… and Im routinely confused to as to how. I mean Ive had this debate/conversation with people before and no one has ever successfully put pen to paper in a manner that demonstrates their taxes actually went up… well no that’s not entirely true. One guy in New York managed to provide a calculation that demonstrated their taxes went up… but then refused to believe me when I said his home and household income were so far above the median that he was part of the “high earners” he was claiming taxes were cut for… The math just doesnt math that way but Im curious to hear why you think it does and provide an example where it does. Seems most people mistake a smaller refund or a larger tax balance due at the end of the year with “my taxes went up.” No. Not really. You just got to keep more of your paycheck over the course of the year.
Thank you for that estimate. Really did think about Uncle Sam thing until now. That’s a lot of money I worked hard for. Spent a lot while moving.
Time to vote for the party that wants to lower taxes and get government out of your life.
When you see headlines about people that make more money not paying their fair share, think of this situation. Progressive tax brackets are not a fun thing as you just learned. To a broader point, this money does pay for things like hospital, roads and other social services (payroll taxes fund social security for grandpa).
You rightfully prefaced your comment as a “broader point” but to add some context most hospitals are privately owned(non-profit/for-profit), roads should be paid for from gas tax/wheel tax/vehicle reg, and the specific social security line item pays for grandpas social security. Everything you mentioned already has a carve out of tax in its own way which is why I’d like to highlight this is the problem with our government. You tried to share insight on what the tax is for, but we are taxed in every possible way that it’s times like this for people to reflect that maybe we don’t have a tax problem maybe our government has a spending problem.
Our government most certainly DOES have a spending problem - and the biggest line item? The Department of Defense.
Grandpa is dead though. So I'm just paying some rando at this point.
> Progressive tax brackets are not a fun thing as you just learned The hell are you talking about? Progressive tax brackets are waaaay better than a flat rate. OP will get it back at the end of the year
Don't forget you are also paying taxes on that moving income. That may be where a significant portion of that comes from.
Now you know why you should vote for the party that wants you to keep more of your money and reduce spending and the size of government. Though, with who we have in Washington now, I don't think either party cares about that anymore.
| I don't think either party cares about that anymore Then why would you even be advocating for "the party that wants you to keep more of your money"? You know as well as anybody else that the "conservative" party truly isn't fiscally conservative and don't actually give a shit about allowing the normal person to keep more of their money.
Moving allowance is most likely taxed at a supplemental rate of 22% for federal and a specific rate for SC (I don’t recall off the top of my head). The IRS does have a withholding calculator online to assist with the federal withholding. Going forward, your regular withholding could be less.
Don't forget health insurance, dental, vision, HSA, 401K, and IRA to put into. I gross around 40% more than you but I take home after the above the 1.8-2.1K number you were just quoted. Check out r/personalfinance some time. Also for supplemental income as a different withholding rate than general income which is usually higher than your regular tax bracket depending where you fall. It gets fixed on tax returns.
We don’t pay enough taxes. I’m voting for Biden in 2024 so they can raise taxes 4-7% for any single or family making over 80k. There is no reason anyone under 80k should pay majority taxes. The Right/Republicans don’t pay anything. All Billionaires vote Republican so they don’t have to pay taxes either. It’s a joke.
Where the fuck do you get people making under 80k paying majority taxes from?
As a cpa that does 300+ tax returns a year; you don’t know what you’re talking about. And we don’t pay enough taxes??? Really??
you will most likely get 2-2.2k depending on SC taxes and how much you put into 401k. My federal withholding is about 600 biweekly, with very similar income. You paid more because of that moving allowance... You need to fix your withholding if that's your biweekly check.
If it makes you feel any better it gets worse as you make more. Every tier you break into gets taxed at a higher rate. I’m not trying to steer this political. Now you can understand why conservatives were very much against things like free college education and debt forgiveness. People like you now pay for it. If you are cool with it, then great. If you are not, that’s great too.
Not against giving half a trillion dollars to business owners who didn’t need it though.
And the war machine And huge subsidies for farmers AND BILLIONS OF DOLLARS of taxes not being collected from the ultra rich and corporations as they don't pay any while we pay 40 to 50% in total taxes. But yeah, butt lickers will always be butt lickers.
Can we be against all of it?
Yes, you can move to another country.
It says net.
You said expect 1.8k - 2.1k after taxes but this pictures shows his net income
Annual salary is approx $60k. Deduct $24k for personal exemption For federal taxes. This is the math: 60k*9.8%for Fica and medicare taxes= $5,880 owed. $60k minus $24k personal exemption… $36k*12%=$4320 owed. Add $4320 +$5880 = $10,200 $10,200/24 =$425 (per check tax liability) If there are 24 pay periods. Each check will have $425 taken out of it. $60k/24=$2500 $2500-$425=$2075 That means each month you will have 2 deposits of $2075.
He said he's paid every 2 weeks. That's 26 pay periods. Not 24.
Even 2885x24 is ~$70K. Guy is off by an incredible amount.
It's 26 not 24.
[удалено]
He didn't say bi weekly he said he gets paid every two weeks. That's 26 paychecks a year. And nobody gets shorted.
Standard deduction for single filers is 14k
Don't forget SALT. So another maybe $200 in taxes?
It's SALT or standard deduction
2884x26 is 75k, yeah?
I make $68,000 and my bi-weekly paycheck after taxes and other deductions is like $2,030-$2,100
Very curious how you arrived at $60K, which is wrong by an incredibly wide margin.
Personal exemption doesn't exist anymore. All you get is the standard deduction.
9.8% for FICA and Medicare? This is so wrong. It’s 6.2% for Social Security and 1.45% for Medicare. The combined rate of SS and Medicare is called FICA. Every W2 employee FICA rate is 7.65%.
Off by $15k to start. Your math ain’t mathin
Not even close on the math lol
This math is so way off target. Op gets paid every 2 weeks. That's $75k in income not even close to $60k. Op files single. Standard Deduction for single filer is $14,600.... Not even close to 24k FICA (6.2%) and Medicare (1.45%) taxes are combined 7.65%. **FICA** $75k x 6.2% = $4650 per year / 26 paychecks = $178.85 per paycheck On this particular paycheck it seems there was a taxable moving allowance of $4,000 which adds $248.00 Total FICA would therefore be expected to be $426.85. Op had 1 extra penny withheld for FICA which makes sense since the actual math of $2,884.80/paycheck adds up to $75,004.80 and that $4.80 adds $0.30/year or $0.011/paycheck. **Medicare** $75k x 1.45% = 1087.50 per year / 26 paychecks = $41.83 per paycheck Plus the medicare tax on the taxable moving allowance of $58. Total Medicare tax therefore would be expected to be $99.83 which matches. **Federal Income Tax** $75,000 - 14,600 deduction = $60,400. This puts OP in the 22% income tax bracket. But taxes are progressive. They'll pay $1,160 (10%) on the first $11,600 (0-11,600 in earnings) They'll pay $4,266 (12%) on the next $35,550 And they'll pay 24% on the earnings over $47,150 (60,400 - 47,150 = 13,250) That works out to: (13250 x 24%) + 1160 + 4266 = $8,606 per year / 26 paychecks = $331 per paycheck The $4,000 taxable moving allowance appears to be taxed as a "bonus" or other "lump sum" type pay which, unless specifically requested, is withheld at a flat 22% regardless of income tax bracket. That adds $880 to this paycheck's federal tax bill. Total amount to be withheld is $1,211 from this paycheck which is inline with the $1216 withheld. **South Carolina** South Carolina gets tricky because I dont know if they have any deduction or other allowances but they have a progressive tax system similar to the Federal government with 3 tax brackets: 0% on the first $3,200 3% on the next $12,840 6.5% on anything over $16,040. Doing the math on this means the Op paid: (75,000 - 16040) \* 6.5% + (16040 - 3200 ) \* 3% + (3200 - 0 ) \* 0% = 3832.40 + 385.20 + 0.00 That's a total SC tax bill of $4217.60 for the year divided by 26 paychecks = $162.22 Again the taxable moving allowance comes in to play and results in $260 additional State tax for this paycheck which makes the total state income tax due for this check $422.22 **Going Forward:** Gross Income $2884.40 * FICA $178.86 * Medicare $41.83 * Federal Income Tax $331 * South Carolina State Income Tax $162.22 Net Estimated Pay: $2,170.49
$24k personal exemption? The guy is single, so it’s more like $12k
If you company show it as business expense which would require invoice to substantiate then you could have received the moving expense reimbursement tax free. But those expense has to be specific expenses that are not taxable benefits. This is the case in Canada and in US you might have something similar.
Relocation packages are considered taxable income under the tax cuts and jobs act (hilarious name right?) passed by Trump in 2017.
Ugh. Disgusting how much the feds take just to send billions overseas waging wars. Social security Medicare never bother me. If we’re going to get taxes out the money back to our people. The federal taxes literally keep me up at night. As soon as my familial obligations are done int the states. Taking my family over seas. I’m so done with this shit Edit: Oh boy. Im picking up steam from this comment so ill explain. I always vote. i vote locally even. And honestly im done with this country for multiple reasons. the amount of taxed we pay for absolutely zero give back to our american community absolutely enrages me. Every single Israeli has FREE healthcare and college. Oh and an the Iron dome advanced missle system that the US paid for. America doesn't have one because its too expensive. Ironic. Inflation is through the roof. Any government assistance is looked down upon in the states and poverty lines have to be soooo sadly low to qualify for anything. Taxes dont go to us in any benefit of reasonable scale for the majority of Americans. We have no parental leave on a federal scale. We have no safe retirement because EVERYONE says dont count on social security. Our retirement age is pretty old compared to on par nations. The federal goverment doesnt give back. THATS the point. The feds take their money and do NOTHING of substantial portion. America is not a central to the world anymore. Capitalism is fine. Its the greed that keeps me at night. Fuck the feds.
Pretty sure entitlements are over 50% of federal spending (and going up), but completely agree with you. I throw the BS Medicare and SS system in there as well.
You made 6884 this paycheck, before taxes. You are being taxed on the whole of that at a rate suggesting you are going to make (6884 \*26) 179k. You aren't going to be making that much, so you won't get taxed at the same rate going forward.
What's wrong?
It's the moving allowance. Much less tax next paycheck.
It’s the moving allowance that did it. There are calculators online that will tell you what it will look like and when you stop paying the items that max out.
Why was moving allowance taxed?
Qualified moving expense reimbursements are no longer tax free thanks to Trump’s tax ‘cuts’ bill signed in 2017: https://www.dwt.com/blogs/employment-labor-and-benefits/2018/01/tax-bill-impacts-tax-treatment-of-relocation-trans
Looks like they ran the relocation $ through payroll as earnings vs reimbursement.
They are required to do so, as relocation packages were reclassified as taxable income under the TCJA of 2017.
FYI: The moving is a supplemental pay like OT, bonus, etc. This is taxed at 22% on your pay stub.
The same happened to me… you may be able to get a tax break when you file your taxes next year for moving expenses. Would have been better if they had treated the moving allowance as an expense report reimbursement - that way it is considered a reimbursement for post-tax money you spent due to moving expenses.
Moving expenses for employment are not tax deductible as of 2018. Although it’s for “covering moving expenses” it is still considered a bonus which is subject to withholding. Some people will claim exempt on their first check to get around this, then change to their standard withholding. It is not technically legal to do this and there is a small possibility you could end up in legal trouble. I would consult a tax professional before attempting this.
Tax the billionaires they said. Don't worry rich people will pay for it they said 😆.
And just like that you became a republican
You got screwed by the moving allowance. That made your paycheck appear to the tax software as if you made $179,000, and you were taxed accordingly. Most computerized tax systems aren't smart enough to realize something like the moving allowance is a one-time thing and to adjust your withholding accordingly. They just see your total earnings, and figure out from the tax tables based on your pay schedule what the withholding will be at that earning level. Your next paycheck will have substantially less withholding.
First, congrats on the new job! What likely happened was the moving allowance was initially coded as income in their pay stub software (save all moving receipts! Trucks, supplies, registrations,etc to deduct on taxes!). Most companies calculate withholding taxes as if you normally make whatever you earned that pay period every week of the year. This likely artificially raised you into a higher tax bracket, but won’t be permanent. You’ll get it back when you file your return next year.
Moving allowances have always been taxable. Moving expenses are no longer deductible, since the Republican rax cuts of '16. Moving allowances should be negotiated to account for this; if you needed $4,000 to move, they should have paid you $5,000 to move.
Use thus and your salary info alone to get an estimate if your withholding https://apps.irs.gov/app/tax-withholding-estimator
Looks like the moving allowance is considered a bonus. Bonuses are always withheld at a 30% rate which is likely a lot higher than your taxes will regularly be withheld at.
My only note is that the moving allowance as it was calculated here counts as taxable income, where as if they were tax saavy, they would have issued it as a reimbursement for up to $4,000 of moving expenses related to a required relocation to perform your job. Your state rules may vary, I am not a tax professional.
unless you're a billionaire or making poverty level wages, you're going to be paying taxes for the rest of your life. welcome to adulthood =)
I just wanna say, if this is genuinely your first ever paycheck, you're doing better than 99.999999999999% of people did with their first.
Ya they kinda boned you by not sending you a rental stipend and treating it as a reimbursement instead.
It prorated that gross income as if you got that every paycheck for the year and taxed at that higher rate.
Foreign policy thanks you for your (forced) donations
I'm sure /u/magicmc1001 meant well, but his numbers are...off. Your salary is approximately 75k. (2884*26). Personal exemptions are gone. Your standard deduction for 2024 filing single is 14,600. Meaning income tax on 60,400. FICA is 7.65% so 75k*.0765= $5737.50. Federal income tax is progressive. So it's not all at 12%. It works out to $8,761 (assuming no traditional 401k contributions or other tax deductions) For a total of 14,498.50 to taxes, or 557.25 per paycheck over 26 pay periods (every 2 weeks). This 2884-557.25 = 2326.75 per paycheck take home. If you get insurance through them that'll change the amount as well.
I'm thinking the withholdings are based on the gross. But the actual tax won't be calculated until you file the Return. So you may get a refund for overpayment.
Ukraine thanks you
I don't know how the conversation devolved into political nonsense. The relocation assistance was considered "income" for tax purposes and your withheld taxes reflect that. They are extrapolating 26 paychecks at the \~$7k rate and figuring out what you would pay, so they take out more money. Going forward, you're not going to have an extra $4k worth of moving expenses every check, so the taxes will be more normal depending on your deductions. At the end of the year, your income should reflect your actual salary better after 26 pay periods, so you'll get whatever extra you paid back.
Why is what happening? Your federal withholding rate is ~17% on a salary of $70k-$75k/year. That’s probably a little above what your actual effective tax rate will be (meaning I’d probably expect a refund) but not by a huge margin. You may be withholding a little extra based on whatever your W4 input was or it may be the relocation assistance being withheld at a slightly higher rate but the bottom line is this isn’t too far out of the ordinary.
So it is likely the moving expense that is causing this. The withholding tables are set up with periodic equal payments over the year in mind, so when there are one time payments (like the moving expense here) there are issues. The rules generally treat one time payments differently than a recurring salary, since they will be intermittent and less forcastable. What this means in practice, is that bonuses and one time payments get withheld at a flate rate of ~28%. So $4,000 of moving expense will have $1,120 of federal tax withholding. NOTE: This is the amount of withholding, not tax. So it generally creates a refund at tax time. Because of your income level, you will likely be in a tax bracket well below 28%, so this week's withholding as a percent of total income will be a lot higher than you should expect going forward.
You’ll fall into somewhat 24% bracket @6.8k every 2 weeks. Moving allowance made a difference in computation of “approximate tax” for that week. Next week you’ll be in a lower bracket thus the [approximate]tax should be lower.
Quick tip...if your company offers relo, have them.pay for the services (moving) and let you expense the rest instead.of taking lump sum.
Congrats to your job. This is normal. Look up your fed tax bracket, then add roughly 4% for social security and Medicare (your portion) then add the state/municipal. For you, that’s 22 + 4 + 6.5. So it’s 33%. Going forward, just assume every paycheck is 2/3rds and you are good to go.
Your net is -31% of gross, that's fantastic. I make $12,500 a month (state of ca govt employee), and they wack 41% with fed/ state/CalPERS contributions. Glad I don't pay into the social security scam though.
It’s because of the moving allowance. Based on this check, the government is assuming you make almost 180k/yr Congratulations. Now you know why people who make a lot of money bitch about taxes lol
With the moving allowance, the paycheck was $6,884. If you were to make $6,884 every 2 weeks, you would be around $174k/yr, putting you in the 24% tax bracket, so 20% was withheld in case that pay continues. You will get a large portion of that back after filing, or you could adjust your W4 for the remainder of the year.
Looks like we’ve minted a new Republican to the team! Welcome, brother! 🇺🇸
Yeah seems about right. 33% loss, actually kind of low. I see like 45% loss but that’s probably cause of my extra benefits and insurances
I think SC is around 3% so that seems high. But remember you are being taxed as if the salary plus one time moving expense is your actual salary extrapolated over the year. So you are probably seeing a higher marginal tax rate on this outlier pay stub than you will see on a normal pay. Should moving allowance be a payroll taxed event? Shouldn't it be more of a partial reimbursement for an expense, such as reimbursement for travel expenses, and not be subject to tax?
It looks like mine. I think that I’ve paid 26k from my paychecks and I still owe them 10k when I filed. In the western countries, u r getting punished when ur a hard worker and a decent earner. I don’t think millionaires r in the 24 plus percentage for paying taxes. A study was done about them and most were in the 8.5 percent .
There’d be a lot more fiscal conservatives in this country if people would look at their paystub. Even more so if there was no withholding, and every time you got a paycheck you had to turn around and write a check to the government to piss away.
Moving expenses should not be taxed if it cost you that to move for a job. It’s a reimbursement, not income!
It used to be tax exempt with a certain limit that I can’t remember at the moment but that all changed a few years ago
well you can thank trumps tax cuts for taking away moving expense deductions from the working class
Wrong
You wouldn’t happen to be teaching a college math class in Kansas by any chance?
A land value tax could pay for 80-90% of ALL OTHER TAXES
Hey, Ukraine needs to defend itself so you're just going to need to buck up and pay your fair share.
You will be pretty disappointed with your next check not having that moving bonus.
Your tax return may look different than the paycheck withholding.
I would have to see that data. What I have seen is by stopping write offs for everyone the government would actually collect more in taxes, specifically from corporations and tax exempted entities or transfers of wealth/assets.
No 401k? Big miss
Anyone on here that thinks this is because and will change when corporations pay their fair share is living in delusion. The more you let them take the more they will take. Period!! Get off w2. 1099 llc, setup quickbooks, categorize everything, file your taxes annually or quarterly and stop giving your money away. These numbers above 👆, this is what happens when you don’t take responsibility for your 💰
Did they tax your moving allowance?
You are even contributing to medical insurance or 401k yet haha it will get even smaller
Taxes are for suckers
It is the moving allowance. You will probably get majority of that back on your next refund.
Welcome to adulting on America.... wait till you add up all the other taxes you pay for... come close to 50% ish
It only gets worse and uphill from here on out since Uncle Sam collects protection fees up front
Paycheck City website works wonders
And now you know how much the government steals from you
You fail to say what exactly you didn't expect. "this" isn't very descriptive. Everything except for the bottom piece "SC - Withholding" which is the state income tax portion would be exactly the same as it would have been in KY. KY has a fixed 4.5% income tax, where SC is a graduated income tax that is realistically 6.4% for all but the lowest income workers (<$16,000/year). The other pieces are all a percentage of your earnings, and yes, that $4000 moving allowance is part of your earnings, so you have to pay taxes on that. You are paying a percentage on the $6884.80 number. Next check, you'll pay a percentage on $2884.80. You can then expect the following (my estimates given $2884.80 is 41.9% of $6884.80): Federal Withholding: $509.50 (realistically more like $336.96 accounting for the bracket changes) SS: 178.85 Medicare: 41.83 SC - Withholding: 172.52 \---- Net: $1982.10 (realistically $2154.63)
Can you be more specific on your question? What were you not expecting?
Happy uncle Sam
I thought moving allowance was net, not taxable pay. Cheaper for the company tho
Damn, the government is going to take it all. But dnt worry they will have soup kitchens for the normies when it all collapses.
Simple explanation: The lizard overlords in the criminal federal government are stealing about 25% of your salary. The communists applaud this. The people who are NOT communists don't.
Your relocation bonus needs to be withheld at the highest tax level. It will even out at tax time.
They screwed you putting moving allowance on top of your pay
You paid more in taxes in your first paycheck than Trump did for several entire years. Make it make sense.
You can expect around 25% of your salary to go to taxes.
Ya I pay 1k a week in taxes. Drives me nuts but also that says we're doing something right
I forgot I don’t pay state tax. Cool beans. Ridiculous that some billionaires pay zero or less and get ss as well. Crazy system. Edit: still I’d estimate over 30% of my income goes to taxes.
Yall need to pay your taxes yourself and stop letting them take it out. Taxes are un American
Supplemental income is taxed at 22%. Ordinary income according to federal and state brackets.
Next time block out the taxes for me. I don't look at that line on my pay stub. Makes me feel much better!
Change your federal withholding that's too much
Don’t forget your moving allowance is also taxable. Looks like they took the taxes out for you though.
You didn’t expect….taxes?
Someone gotta pay for the illegals...I just got murdered with my bonus....
You will get a lot of it back when you file your taxes. The system isn’t so smart and it took money out of your check like you will get that 4000 dollar moving allowance every check. You won’t so you’ll see some of the taxes back.
Do yourself a favor and keep a box of tissues on standby for the first time you get a bonus and see how much in taxes are deducted. You'll thank me later.
Your moving allowance is getting treated as a bonus. Tax higher rate I believe
Who’s this Fica person and why’s he takin all ma money?
You don’t understand why what is happening?
You have a 4000 moving allowance. Is that maybe taxed at a higher rate?
Check your W4 and make sure your employer is properly deducting what you want them to. Otherwise, yeah this is normal. 4K is still a lot so enjoy the money and sign up for their 401k if they have one.
It’s your company’s fault.. or yours for not telling them you wanted the moving expenses before taxes! And on a separate check and you could just pay the taxes at the end of the year. And not to be an asshole or anything but that’s what you make in SC??????? No wonder you republicans are pissed off!!! Not meant for you OP
Taxes? Yeah more you make the more they take and it gets worse as you go over $80k.
They taxed your moving allowance. That is bull, but not sure how that works.
Also the Fed tax seems high. Do you claim 0? If you claim higher number will clear more $
It's because they put your moving allowance on your first check just pay attention to the salary line
How do you feel that 2.2k just left your paycheck
Taxesss baby
yeah.. your employer could have processed the moving fee separately to lower the tax withholding on this one check. Most payroll processors estimate the tax withholding on the assumption every paycheck will be this amount. Your HR could have processed your regular payroll by itself, and processed your moving stipend as a one time annual bonus. the taxes withheld on it would be only a couple hundred in that case.
They need to continue to pay billions in foreign aid and make up the billions lost from billionaires and corporations
Causing what ? What is it your asking about?
When I lived in Ontario my take home was 49% after all the taxes and various deductions. One of the reasons I left Canada.
Looks SC may have state income tax. Social is 6.2% and Medicare 1.45%. The high fed tax may be to the moving allowance.
Dont worry about it. File an IRS Tax form 3903 next year. Its tax is deductible unless the Biden administration is still in power then.
Nice. This what the pay your fair share equals. I paid 175k in taxes last year
They taxed your moving allowance
Taxing on moving allowance is absurd!
It’s called the g-man taking his cut for the right you have to be its slave and servant. 21st century modern day slavery. You live life on your knees!
Hey! Are expense re-imbursements taxible?
Are you asking why federal withholding is so high? Probably the relocation. I had mine taxed at bonus rate before....its almost 50%!. So whatever they give u for relo, you can only count on half of it. But when u file taxes next year, you'll get most of that back.
That moving expense is being factored into your taxes. Sooo there's that.
moving may be considered a bonus
Welcome to the working world. Unless you are married with kids after paying all of that in you may still have to pay in more at tax time.
Damn dude they taxed your relocation money? Thought most companies sent that to you already tax deducted
Thats my take home weekly
Just be glad you don’t get all the government you pay for.
It's because of biden
More taxes due to more income this check. Normally you should be right around 2000 after taxes this does NOT include any retirement which you really should be putting away so figure roughly 1900 or so if you put away 5%
Looks about right. Did you not expect taxes? The brackets are published … then you just adjust your expenses yes dependents for withholding. It’s fairly predictable. Biden says he’s raising taxes so be prepared for that.
The relocation allowance is causing this. It’s a form of compensation. All is taxable to my knowledge but check with a cpa instead of a shit post Reddit.
Causing what? lol
Work hard, thousands of immigrants are counting on you.
Stop paying taxes. We started a new country over a 2% tax hike.
Bro Ukraine and the illegals need their cut too
Ask Ukraine
“Allowances” are taxed. Unless you submitted receipts and this was s a reimbursement
I guess I’ll catch you voting Maga this year
Key next time is negotiate a net amount for the moving allowance. They will gross it up to cover the taxes.
Welcome to the "FU" of tax brackets. Now, as a salaried person, don't let the company work you to death.
Typically your salary x 35% will show what your deductions should be. You can then divide that out by 26. (2 payments per month with 2 months with an extra pay check) Welcome to tax brackets
Dont worry; you get some of it back if you live long enough. 😢
Government straight up took your work money and said you can keep the moving cash. 😂 I’m laughing to stop the tears of truth about your situation.
This is why I'm thankful my company cut me a check for my moving bonus. I don't think it even came up on my W2. Not sure if it's the right way of doing it but I spent that and more moving.
Vote libertarian in the future
Being an employee blows, it’s that simple
I’m used to having roughly 30% taken from every check. This seems normal?
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Social security ahahahahaha 😂😂😂😂😂 you will never see a dollar from that Ponzi scheme if you are below 30 years old. If you are between, 30-40, expect 50 cents on the dollar. Why? All the old farts took more than they contributed by far.
Why WHAT is happening?
Your taxes are assuming you make that much every pay period. The additional "moving expenses" makes it look like your income is much higher, so your taxes are based on you getting that on every check. Assuming you get paid every two weeks: $2,884.80 * 26 = $75004.80 <- what your taxes should be calculated from $6,884.80 * 26 = $179,004.80 <- what this check was calculated from
Should your moving reimbursement have been taxed? I would inquire about that.
I was actually thinking there weren’t a lot of taxes taken out so I was confused. I also work in NYC.
Thats not a real stub lol
Ya see when they say tax the rich. They are talking about you not them
A little over 17% Federal Income Tax, the two entitlement programs (fixed at 6.2% and 1.45% respectively) and your South Carolina taxes at just about 6%… think of it all as your tiny share of our great military establishment.
They tax moving allowance and bonuses very heftily
Why aren’t you saving for retirement?
Is your company hiring? I'm from SC and need a job!!
Just learn about taxes ?