Federal and state taxes are deducted from your gross salary every month along with social security and

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Federal and state taxes are deducted from your gross salary every month along with social security and Medicare taxes at about 22%, as well as other deductions such as retirement contributions, health insurance or union dues. The amount that is left after paying taxes and other deductions is what you can expect your monthly paycheck to be. This is called your net income. Let’s assume that make 40000 and you pay $250 per month for health insurance and $400 per month towards a retirement account, then you pay state and federal income tax and Medicare and social security taxes at 22%. i.e. there are no taxes paid on health insurance nor retirement premiums; they come out of your income before any taxes are paid. Calculate your monthly net income.

Posted Date: Dec 10, 2021 03:26 AM

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Federal and state taxes are deducted from your gross salary every month along with social security and

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