In USA you make less money every paycheck because of a "hidden" tax

For people that think we do not pay enough taxes, I am not sure if you are aware that your employer has to match (up to a certain amount) all of your federal tax deductions. So you think they are just taking 20% to 25%? Think again.

Federal Income Tax The federal income tax is a payroll tax that employers must withhold from an employee’s wages or salary. At the end of the year, the employee reports the amount of tax withheld and compares it against their actual tax liability. Employers are responsible for depositing the withheld tax money throughout the year. Most employers can make these deposits quarterly, monthly or semi-weekly, although there are instances when deposits may be made within one banking day. Social Security and Medicare Taxes Taxes for Social Security and Medicare are generally paid equally by the employer and employee in order to fund these entitlement programs. Employers must withhold a certain percentage from the first $113,700 of an employee’s salary or wages. The percentage amount in 2013 is 6.2 percent. Employers must then pay a matching rate. In general, depositing requirements for Social Security and Medicare taxes will follow those for federal income tax withholdings. Businesses can refer to several IRS forms found in IRS Publication 15 and Publication 51. Businesses must file specific federal returns in a timely manner throughout the tax year to avoid penalties and interest. Federal Unemployment Tax The Federal Unemployment Tax, or FUTA, is an employer tax that most employers pay to the federal government to provide funds for paying unemployment compensation to workers who have lost their jobs. Deposit schedules for FUTA is based on FUTA liability. Due dates can be found on IRS Form 940 instruction material. These payroll and employment taxes must be competently managed by employers, or turned over to a professional to ensure compliance with tax and payment responsibilities to the federal and state governments.

www.paychex.com...

www.irs.gov...

a reply to: Fools

I think most People do know this but don't really think about it. Small businesses are fined for not paying the money BEFORE they even earn it. The small businesses are under a heavy burden from all sides local state and fed.and that is onr reason why so many fail.

Add to that the little fees you see on cell phone bills, cable bills, gas tax and so on and so forth.

The actual concept of currency is still an alien concept to me. Paper that says "this is what I'm worth, please take some of it so I dont go to jail"

originally posted by: SeaWorthy
a reply to: Fools

I think most People do know this but don't really think about it. Small businesses are fined for not paying the money BEFORE they even earn it. The small businesses are under a heavy burden from all sides local state and fed.and that is onr reason why so many fail.

Of course the big corps don't care because they know this limits competition from below.

originally posted by: rollanotherone
Add to that the little fees you see on cell phone bills, cable bills, gas tax and so on and so forth.

The actual concept of currency is still an alien concept to me. Paper that says "this is what I'm worth, please take some of it so I dont go to jail"

Exactly, the fact that no one actually owns any property in the USA is disgusting. This is not a free country by that fact alone.

For people that think they do own property, try not paying taxes on said property for years on end and see what happens.

OP's premise is false. He is discussing unemployment insurance. This is paid by the employer not the employee. It does not reduce an employee's paycheck except insofar this is a business expense of the employer that affects the bottom line. If you are laid off through no issue of your own, you get "unemployment." Where do you think the money to pay you comes from? This is what pays for it. In my state it is collected by the state, not the Feds, and is usually about 3.5%. If your employer frequently lays off people, his "experience rating" goes up and so does the percentage. If you are a government employee, whether a library or a city, your employer is on a "reimbursable" basis and pays dollar for dollar for what it costs with zero % paid as a "tax."

Unemployment Compensation is a complex subject, and I do not want to write a thesis on it here. I once worked for the Dept. of Employment Security that administers unemployment. There's a lot to it. In times of great unemployment, you get to collect longer. When unemployment is low, the number of weeks you can collect is less.

Industrial Insurance is similar, but this time the employee contributes half. This is to pay for on-the-job accidents. A clerical employee pays very little per hour, a few cents. A construction worker or a logger pays a great deal. This pays for medical bills, replaces salary, and pays "disabled" people who can no longer work. It is actually a lot bigger than the unemployment system. I once broke my arm when I slipped on wet grass, but because I had just stepped onto company property from the sidewalk, state industrial paid for the whole thing. I never saw a bill.

The major point here about unemployment is that it is NOT A HIDDEN TAX at all and the EMPLOYEE DOES NOT PAY FOR IT. Alas, ATS is full of this stuff and simply cannot be trusted. A good example of Fake News.

a reply to: schuyler

Exactly right.
People don't realize how much it costs to have employees beyond their base pay.

Total taxes is more like 52% the last time I did the calculations. But don’t worry Nancy Pelosi want more.

a reply to: schuyler

Don't you think the employers pay thier employees less because of how much they pay into unemployment compensation?

Instead of the employee making 15 an hour, they make only 10 an hour or less. Then the employer decides to cut back on the number of employees expecting the other employees to pick ip the slack. Seen and heard that so many times.

It's like when the gas prices went up to almost 4 a gallon a few years back. Hubby was a truck driver. He said the trucking companies were not taking the loss in paying more for gas. They charged their customers more, who in turn charged the final consumers more for buying the product.

I could go on. In the end it amounts to the employee getting the short end of the stick.

a reply to: Fools

So, you never bothered to look at your pay stub?

a reply to: schuyler

He is discussing unemployment insurance

And medicare, and social security.

FUTA/SUTA are the price of business. People do not pay less because of this. They pay less because of Obamacare ,regulations and not being able to compete. All three things our president has created with the magic wand Obama says does not exist.( I am sure Michelle brings up that one in arguments).

The average person now who makes up to about 13 bucks an hour if part time pays little or sometimes none in Federal Tax. Was not the case before the cut unless they claimed exempt yet there have been record tax collection the last year.

It is working.

The secret taxes are the ones you pay for local and county legislation that is rolled into Income Tax or Gas Taxes. Look at California as a prime example. People blame gas hikes on OPEC when local commissions are passing it to pay back developers and friends. Stick to local politics and make a difference when you can.

a reply to: matafuchs

FUTA is pretty cheap and tops about at $7,000 of gross income for the year. So, assuming you pay SUTA, that comes to $42 for each employee.

SUTA can get pretty pricey though, but like FUTA, the employer pays it. TDI as well (also cheap).

Worker's Comp also paid by the employer. Not cheap.

originally posted by: schuyler
OP's premise is false. He is discussing unemployment insurance. This is paid by the employer not the employee. It does not reduce an employee's paycheck except insofar this is a business expense of the employer that affects the bottom line. If you are laid off through no issue of your own, you get "unemployment." Where do you think the money to pay you comes from? This is what pays for it. In my state it is collected by the state, not the Feds, and is usually about 3.5%. If your employer frequently lays off people, his "experience rating" goes up and so does the percentage. If you are a government employee, whether a library or a city, your employer is on a "reimbursable" basis and pays dollar for dollar for what it costs with zero % paid as a "tax."

Unemployment Compensation is a complex subject, and I do not want to write a thesis on it here. I once worked for the Dept. of Employment Security that administers unemployment. There's a lot to it. In times of great unemployment, you get to collect longer. When unemployment is low, the number of weeks you can collect is less.

Industrial Insurance is similar, but this time the employee contributes half. This is to pay for on-the-job accidents. A clerical employee pays very little per hour, a few cents. A construction worker or a logger pays a great deal. This pays for medical bills, replaces salary, and pays "disabled" people who can no longer work. It is actually a lot bigger than the unemployment system. I once broke my arm when I slipped on wet grass, but because I had just stepped onto company property from the sidewalk, state industrial paid for the whole thing. I never saw a bill.

The major point here about unemployment is that it is NOT A HIDDEN TAX at all and the EMPLOYEE DOES NOT PAY FOR IT. Alas, ATS is full of this stuff and simply cannot be trusted. A good example of Fake News.

You are completely wrong. I worked some time ago for CTL, they were the ONLY company I ever worked for that showed what your cost was to them as an employee. It was not just unemployment tax. It was EVERY federal tax that they matched dollar per dollar. Which in turn effects the rate they can pay their employees. When I get home today I know I have a saved copy somewhere and I will black out my personal information but I will leave the tax amounts visible. You can choose to fool yourself about your taxes and what you pay - that is fine by me. You sir or maam ARE not fake news but uninformed news.

originally posted by: Phage
a reply to: Fools

So, you never bothered to look at your pay stub?

Yes, and only one company I ever worked for showed the expenses they paid to keep me as an employee in regard to federal taxes. The rest only show things like 401 k match or insurance cost. For some reason never the tax cost. Except one, and I will be uploading a doc here in a few hours to prove it.

a reply to: Fools

Yes, and only one company I ever worked for showed the expenses they paid to keep me as an employee in regard to federal taxes

Why should they? They pay it, you don't.

For some reason never the tax cost.

Strange, every paycheck I've received had the deductions itemized. You don't get a W2 each year?

originally posted by: Fools
For people that think we do not pay enough taxes, I am not sure if you are aware that your employer has to match (up to a certain amount) all of your federal tax deductions. So you think they are just taking 20% to 25%? Think again.

Federal Income Tax The federal income tax is a payroll tax that employers must withhold from an employee’s wages or salary. At the end of the year, the employee reports the amount of tax withheld and compares it against their actual tax liability. Employers are responsible for depositing the withheld tax money throughout the year. Most employers can make these deposits quarterly, monthly or semi-weekly, although there are instances when deposits may be made within one banking day. Social Security and Medicare Taxes Taxes for Social Security and Medicare are generally paid equally by the employer and employee in order to fund these entitlement programs. Employers must withhold a certain percentage from the first $113,700 of an employee’s salary or wages. The percentage amount in 2013 is 6.2 percent. Employers must then pay a matching rate. In general, depositing requirements for Social Security and Medicare taxes will follow those for federal income tax withholdings. Businesses can refer to several IRS forms found in IRS Publication 15 and Publication 51. Businesses must file specific federal returns in a timely manner throughout the tax year to avoid penalties and interest. Federal Unemployment Tax The Federal Unemployment Tax, or FUTA, is an employer tax that most employers pay to the federal government to provide funds for paying unemployment compensation to workers who have lost their jobs. Deposit schedules for FUTA is based on FUTA liability. Due dates can be found on IRS Form 940 instruction material. These payroll and employment taxes must be competently managed by employers, or turned over to a professional to ensure compliance with tax and payment responsibilities to the federal and state governments.

www.paychex.com...



www.irs.gov...

Employer pay 6.2% social security as does the employee. The employer pays none of the federal or state taxes, they just withhold it and submit it for you.

originally posted by: Phage
a reply to: Fools

Yes, and only one company I ever worked for showed the expenses they paid to keep me as an employee in regard to federal taxes

Why should they? They pay it, you don't.

For some reason never the tax cost.

Strange, every paycheck I've received had the deductions itemized. You don't get a W2 each year?

I am not sure if you understand what I am saying. If that cost is a cost the company makes just to have an employee, that means that amount is an amount he or she could never pay the employee. Not saying that they would, because they wouldn't have to. However, if they wanted to - it would make it easier to pay that "fair wage" everyone is talking about.

And to me, isn't it funny that so much of our labor in turn goes to pay an institution that hasn't been able to balance its books for freaking ever now? Why do we all allow so much of our work to go to this institution? Why does it "fund

originally posted by: sligtlyskeptical

originally posted by: Fools
For people that think we do not pay enough taxes, I am not sure if you are aware that your employer has to match (up to a certain amount) all of your federal tax deductions. So you think they are just taking 20% to 25%? Think again.

Federal Income Tax The federal income tax is a payroll tax that employers must withhold from an employee’s wages or salary. At the end of the year, the employee reports the amount of tax withheld and compares it against their actual tax liability. Employers are responsible for depositing the withheld tax money throughout the year. Most employers can make these deposits quarterly, monthly or semi-weekly, although there are instances when deposits may be made within one banking day. Social Security and Medicare Taxes Taxes for Social Security and Medicare are generally paid equally by the employer and employee in order to fund these entitlement programs. Employers must withhold a certain percentage from the first $113,700 of an employee’s salary or wages. The percentage amount in 2013 is 6.2 percent. Employers must then pay a matching rate. In general, depositing requirements for Social Security and Medicare taxes will follow those for federal income tax withholdings. Businesses can refer to several IRS forms found in IRS Publication 15 and Publication 51. Businesses must file specific federal returns in a timely manner throughout the tax year to avoid penalties and interest. Federal Unemployment Tax The Federal Unemployment Tax, or FUTA, is an employer tax that most employers pay to the federal government to provide funds for paying unemployment compensation to workers who have lost their jobs. Deposit schedules for FUTA is based on FUTA liability. Due dates can be found on IRS Form 940 instruction material. These payroll and employment taxes must be competently managed by employers, or turned over to a professional to ensure compliance with tax and payment responsibilities to the federal and state governments.

www.paychex.com...



www.irs.gov...

Employer pay 6.2% social security as does the employee. The employer pays none of the federal or state taxes, they just withhold it and submit it for you.

You also are completely WRONG

Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. Currently the social security tax rate is 6.2%.

www.alllaw.com/articles/tax/article5.asp

a reply to: Fools

Oh, I see.

Yes. Taxes are a business expense.

Should your employer tell you how much they pay for paperclips too?