Why is your take-home pay less than your salary? Understand taxes and deductions so nothing surprises you.
Gross pay is your salary before deductions. Net pay is what you actually take home after taxes and deductions.
Withheld based on your tax bracket and W-4 form. More allowances mean less withholding.
Funds retirement and disability benefits. Currently 6.2% of your wages up to a cap.
Funds healthcare for seniors. Currently 1.45% of all wages with an additional 0.9% for high earners.
Varies by state. Some states have no income tax. Check your state's rate.
Employer-sponsored health insurance costs are deducted pre-tax, lowering your taxable income.
401k contributions are deducted pre-tax. This lowers your taxable income while saving for retirement.
Dental, vision, life insurance, FSA/HSA, and commuter benefits may also be deducted.
When you file taxes, any over or under withholding is reconciled. You may get a refund or owe more.
Review every pay stub for errors. Mistakes in withholding or deductions can be corrected.