Flabound oneday

just trying to do some figures and budget and would be obliged for help -no need for specific individuals salary details.

oh and this is for florida so no state income tax.

1. is federal income tax deducted at source as in the Uk or assessed annualy?
2. are there any other dedcutions (like NI ) in the US ?

TIA

tonrob

Federal income tax is assessed annually through completing a tax return. Your employer however will make a withholding from your paycheck each month and you may adjust this so as to get it as close as possible to what you think your annual tax bill will be. I think there may be a fine if you come up too short at that point.

It gets very bloody complicated (at least it was for me compared with the UK where I never had to complete a tax return and basically didn't have to lift a finger or spare a thought for my tax situation). There are a bazillion threads on here discussing taxation but they do often get fairly complicated fairly quickly. Once you know the right terms to Google there's tons of info online.

Instead of NI there are Social Security deductions that are taken too - I don't know the exact rates but again Google may be your friend.

Good luck.

Flabound oneday

cheers for that-yes google and wkipedia are bloody brilliant. it appears to be called FICA and runs around 7.6% (still better than NI at 11)from what i can see

md95065

Actually it is two separate taxes:

Social Security (FICA) at 6.2% on the first $106,800 of income.
Medicare at 1.45% on your entire income.

(of course that is just the employee's contribution)

Don't forget that income taxes aren't the only taxes that you will be paying. There are also sales and local taxes on most purchases which can be anything up about 9% and which (unlike VAT in the UK) are not included in the "sticker" price of the item.

penguinsix

Just google: salary calculator florida

or paycheck calculator florida.

There are dozens of them online.

It will go through line by line what you should look for coming out of your paycheck.

note: FICA,etc is 7.6%, but that is assuming you have an employer paying 'the employer's share'. If you are self-employed or a contractor, you are required to pay the 'employer's share' of that tax which is like another 5% or so.

Duncan Roberts

Maybe city tax but then all the other deductions that aren't tax related, health insurance, dental/vision insurance, short term disability, long term disability, life insurance, retirement, parking, etc. Optional or not applicable but most are a good to have.

Manc

not when you take health insurance premiums into account

Sally Redux

Plus co-pays.

Mummy in the foothills

and deductibles.
You really can't compare what you pay in UK verses what you pay in US as each country covers different things with the taxes. All you can do is see what it costs to live in the area you are moving too, see what you will get paid (take home) and see if you can afford it, then add lots of hidden fees (taxes) and go from there.

Flabound oneday

i already pay an extra £175 a month for PHI on top of Ni here and dont forget employers Ni is 12% not 5....


this wasnt for my pay though it was for my other half -she has to contibute too

Sally Redux

I don't remember NI ever being 5%

Flabound oneday

i didnt say it was - someone said employers contribution in the Us is 5%

Sally Redux

Well good luck with it but I can't see you saving a huge amount of money.

Duncan Roberts

For a couple average health insurance with average coverage, co-pays and deductibles will run around $1000 a month, could be a lot more, could be a bit less depending on the options. If you get it via a job then you may find some of that is subsidized but a lot of companies are paying less or nothing at all nowadays. Chances are you won't be much better of in terms of pay here, maybe a little but you could very be a whole lot worse. It's impossible to know until you have the job and know exactly what the employer offers and charges.

penguinsix

The employer's contribution is about 5% or so. I'm speaking as an employer and actually it's the overall contribution is a bit more as we have to contribute to unemployment insurance too but that's not something a self-employed person is involved with.