The April Fools «: "Taking the very simplified information from above, on a salary of $50,000, she ends up walking home with $28,950. But that salary of $50,000 actually captures the net payment to her from the employer, which should be $65,500 (the employer share of payroll taxes and contributions to health premiums included now but which do not have state and federal income taxes deducted from). Putting this all together, each year my wife’s “supposed” compensation should be $65,500. And each year she walks home with $28,950. This is an effective marginal tax rate on her annual work effort of 56%."
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