The percentage of taxes taken out of a paycheck depends on several factors, including income, filing status, and number of dependents. The amount of taxes withheld from each paycheck is determined by the employer based on the information provided by the employee in their Form W-4. The following are some of the taxes that may be withheld from a paycheck:
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Federal Income Tax: The amount of federal income tax withheld from a paycheck depends on the employees income and filing status. The federal income tax brackets for 2022 are 10%, 12%, and so on.
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Social Security Tax: Both employees and employers pay 6.2% of each paycheck for Social Security taxes, but the 6.2% that employees pay only applies to income up to the Social Security tax cap, which for 2023 is $160,200.
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Medicare Tax: Both employees and employers pay 1.45% of each paycheck for Medicare taxes, without any limitations.
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State Income Tax: If an employee is required to pay state or local income taxes, they may face additional withholding for the appropriate taxing authorities in their state or community.
To calculate the percentage of taxes taken out of a paycheck, you can divide the sum of all applicable taxes by the employees gross pay. However, its important to note that this is just one piece of the larger paycheck picture, as there may be other deductions such as health care, retirement, or other expenses.