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> so if your salary is 80K then the employer is likely paying another 80k for things like social security and health insurance Is that 80K gross salary? If it
by balfirevic 6y ago
> so if your salary is 80K then the employer is likely paying another 80k for things like social security and health insurance
Is that 80K gross salary? If it is, that would mean that the ratio of take_home_pay/total_cost_for_employer for US is smaller than in much of Europe (which is surprising to me).
Here is what numbers for that kind of salary would look like in Croatia:
Gross yearly salary: 80 000 USD
Total cost for employer: 93 200 USD
Take home pay: 48 088 USD
(Note - this puts you in the highest tax bracket, almost no one makes that much.)
- kasey_junk 6y agoIt really depends on a lot of tax factors & health insurance but in the US your take home on 80k would be higher than 48k. An example single person with no kids would have 12400 in federal income tax and 6k in social security/Medicare taxes. They’d also pay the employee portion of their health insurance premium which can be anything from 0 to a couple hundred per month but is paid pretax. The highest federal tax rate in the US is 37% and that’s only taxed on income over 518k.
- itronitron 6y agoI should point out that I'm considering the 2X to be the total operational costs to the employer for having an employee. In other words, if I am billing a client $X per hour then my expectation is that my salary will never be more than $X/2 per hour. As kasey_junk points out, an employee will have federal income tax, social security and medicare payments as well as health insurance premiums removed from their paychecks. Some employers also offer additional insurance policies such as short term disability, long term disability, and life insurance. Those are optional and would be additional deductions from the employee's paycheck.