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Right, so the employee will pocket 60k out of the 100k the employer pays? Are there any other costs for the employer?
by brtkdotse 6y ago
Right, so the employee will pocket 60k out of the 100k the employer pays? Are there any other costs for the employer?
- sushshshsh 6y agoOh got it, if it is a W2 job then in addition to the 40% paid by the employee, the employer needs to pay 7.5% to the government in addition to what the employer pays the employee. Most companies are paying people W2 so that is mandatory, but a few are paying them 1099 so it is not required in that case to pay that 7.5%. And also for big corporations employers will pay health insurance benefits ranging 10k-20k per year per employee. But that isn't exactly as mandatory as the 7.5% tax I mentioned above. But for software engineers and white collar workers, that 10-20k is basically mandatory de facto, not but not de jure.