Timeline for Am I comparing take-home pay correctly?
Current License: CC BY-SA 4.0
21 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 28, 2021 at 20:16 | comment | added | Aaron Novstrup | Might be worth accounting for Social Security taxes. Reducing net pay by $8,925 will change the ratio between the two offers (and the ratios between the net/gross for each offer). | |
| Sep 26, 2021 at 14:44 | comment | added | Fattie | It's a funny topic! I remember being, oh, 17 yrs old and hearing about tax rates ("20, 25, 40 ?!?!") and indeed I assumed it was just a flat percentage in each bracket, as does the OP here. I was very relived when I figured out how it works :) | |
| Sep 24, 2021 at 12:52 | comment | added | Alex L | @user662852 I'm in Canada, we have something similar called CWB. I was not on it. | |
| S Sep 23, 2021 at 21:56 | history | suggested | costrom | CC BY-SA 4.0 |
Added commas and mild reformatting
|
| Sep 23, 2021 at 21:46 | comment | added | Tim | You’ve got some commas in the wrong place | |
| Sep 23, 2021 at 19:37 | comment | added | Relaxed | @Fattie Per your own source: "The Geneva tax table is quite complex as it does not apply a tax bracket system. […] The table below therefore only provides a general overview." They just make it look like a regular bracket system because it's thoroughly counter-intuitive for anybody else. The actual table is here | |
| Sep 23, 2021 at 18:40 | comment | added | user662852 | @SethR Ah, I see the law changed. Prior to 2011, there was a program by which an employer could include an advance EITC payment in payroll to the employee. In that case, HR would have known. | |
| Sep 23, 2021 at 18:38 | review | Suggested edits | |||
| S Sep 23, 2021 at 21:56 | |||||
| Sep 23, 2021 at 18:30 | comment | added | Seth R | @user662852, that is one of the rare scenarios where earning more money can mean you actually bring less home. It would be unusual for an HR department to intervene on that basis though since they would have no way of knowing whether an employee is claiming the EITC or not. | |
| Sep 23, 2021 at 18:22 | comment | added | user662852 | @AlexL were you benefitting from EITC at this stage in your career? HR would know if you were getting an advance. There is a semi-infamous trap in the code around $20K-30K (a function of number of children and married/single status) where the loss of benefits means the marginal benefit of extra income is reduced. With just one benefit you're better with +1 dollar income, but stacked phasesouts of EITC, child tax credit, Medicaid, TANF, Section 8 and other benefits means for some low income people, it can be true that one more dollar can actually cost more than $1 to them. | |
| Sep 23, 2021 at 16:01 | comment | added | Fattie | @Relaxed , i have never lived in that Canton, but, might there be some confusion? (Could you be thinking about the "special deals" they have for foreigners, which is kind of flat??) as far as I know they just have normal, everyday, progressive bands: eg, random google: taxsummaries.pwc.com/switzerland/individual/… | |
| S Sep 23, 2021 at 15:44 | history | suggested | Alexander | CC BY-SA 4.0 |
Pretty-print the margin boundaries.
|
| Sep 23, 2021 at 14:40 | comment | added | Michael Richardson | @AlexL I had a co-worker who was absolutely convinced of that. He would go out of his way to avoid pay increases, or, if that failed, to dump everything in excess of the next tax bracket into pre-tax accounts. I was just a dumb kid at the time, so his absolute conviction had me misunderstanding the tax code for quite some time. | |
| Sep 23, 2021 at 14:18 | review | Suggested edits | |||
| S Sep 23, 2021 at 15:44 | |||||
| Sep 23, 2021 at 13:52 | comment | added | Radovan Garabík | @Relaxed and if you have multiple separate incomes and add complex social security, it is not inconceivable you will fall on multiple laws and your effective tax rate will be higher. There was a case in Slovakia years ago when, given certain unfortunate combination and range of wages and self-employment, where the marginal tax rate was 1000% or something. There is also the famous case of Astrid Lindgren and her 102% tax. | |
| Sep 23, 2021 at 12:35 | comment | added | Relaxed | (+1) and realistically every other country in the world that has graduated income tax brackets I know at least one exception to this: the canton of Geneva in Switzerland. They get around the obvious problems with this approach by having very many small brackets but they really define the tax rate that way. And above a million or so, the effective tax rate is constant (which is not the case with a regular graduated income tax). | |
| Sep 23, 2021 at 11:53 | comment | added | Alex L | In past an HR manager told me the company would not raise me more than X because I would then fall in the upper bracket and get taxed more overall, it was to protect me. The lie to junior employee. | |
| Sep 23, 2021 at 4:03 | comment | added | Justin Cave | @BrianBorchers - Added that. I meant to add the disclaimer that I was intentionally ignoring that because the amount will depend on the taxpayer. | |
| Sep 23, 2021 at 4:02 | history | edited | Justin Cave | CC BY-SA 4.0 |
added 389 characters in body
|
| Sep 23, 2021 at 3:58 | comment | added | Brian Borchers | You might take into account the standard deduction as well. | |
| Sep 23, 2021 at 3:56 | history | answered | Justin Cave | CC BY-SA 4.0 |