I have a question regarding my salary in a new position I just took. Long story short, the contract states that I should be paid 55k annually. However, the first month I have been paid two checks of 1500. I'm a bit confused...If my salary is 55k, shouldn't my monthly income be above 4000 even after taxes? I just want to sure i have my logic correct before I bring it to the attention of my boss.
edit: I'm in america, michigan
- A HunchLv 76 months agoFavourite answer
If you are paid bi-weekly (every 2 weeks; 26 times a year).
You are paid $2115 gross per pay check.
You are paying FICA taxes of 7.65% (Social Security 6.2%; Medicare 1.45) = $161.80
Michigan income tax 4.25% = $89.90
Federal income tax = approximately 12% = $253.80
Income prior to other deductions like health insurance or something else = $1609.50
If you are paid semi-monthly (24 times a year).
Gross = $2292
Income after taxes = $1744.29
**these are estimates, you might have different rounding.
Welcome to the adult world.
First paychecks always highlight how much we pay in taxes.
Taxes are on the low end now....
Be mindful of who you vote for. If there is a full democratic government, expect to lose at least an additional 5%, maybe more.
- Hamoon ALv 45 months ago
well that is an estimate
- LLv 56 months ago
Discuss this with your boss or H.R.
- JudyLv 76 months ago
did you look at your pay stubs and see what the gross pay is and what was taken out?
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- StephenWeinsteinLv 76 months ago
If your salary is only 55k, then your monthly income should be far below $4000 after taxes. To get $4000 a month after taxes, you would need to be making $48K annually after taxes, which would mean that only $7k out of 55k would be going to taxes. Even in the U.S., which has some of the lowest taxes in the world, taxes aren't that low.
I assume you get paid every 2 weeks. To start, 55k per year is $2115 every two weeks before taxes. Federal income tax, social security, and medicare will be about $400. That leaves $1700. State and local taxes vary from place to place, but $100-$200 is certainly reasonable. So that leaves just $1500-$1600. What they are paying you is about right.
Getting $4000 a month is completely impossible, because that would mean getting $2000 after taxes when you're only making $2115 before taxes and and the taxes can't be only $115 when you make over $2000.
- capitalgentlemanLv 76 months ago
Don't forget about the taxes! 3k per month take-home sounds about right for 55k gross per anum. There will be all sorts of deductions - Federal, and State tax (and, maybe city too; I am not sure how it works in the USA), pension, benefits, possibly medical, and, and, and, ....
When I was working full time, we used to figure on take home being about 60% of gross pay (I was in the Canadian military).
- Anonymous6 months ago
"If my salary is 55k, shouldn't my monthly income be above 4000 even after taxes?"
55k is a monthly gross of $4583. You owe 7.5 off the top for FICA. Income tax comes after that. And then your portion of worker's comp, medical insurance and whatever else...
Are you paid bi-weekly or semi-monthly? It makes a difference.
If you are paid bi-weekly, your gross would be $2115 which doesn't sound out of line for net of $1500.
If you are paid bi-weekly, some months you will receive three paychecks instead of two.
You said nothing about what the pay schedule is, how much your gross is, how much is being deducted for what....
No one here knows how you filled out your W-4, what your portion of medical insurance premiums are, etc.
- ?Lv 76 months ago
Tax is different in different parts of the world.