What taxes get applied to me each year?

Question

I would like to know if I have included all the right taxes in my analysis below. Does this look about right to you?

Salary: $50,000

Married: Yes

Allowances: 0

== Witholdings ===

Federal Income Tax: $1,550 + 0.15 * ($50,000 - $23,550) = $5,517.50

IL Income Tax: 0.03 * $50,000 = $1,500

Social Security: 0.062 * $50,000 = $3,100

Medicare: 0.0145 * $50,000 = $725

FUTA: 0.062 * $7,000 = $432

== Analysis ===

Taxes witheld: $11,274.5

I get to keep: $38,725.5

Effective tax rate: $11,274.5/$50,000 = 0.22549

Answer 1

The employee doesn't pay FUTA, the employer does.

You've also simplified the tax calculation.

For 2008 for US citizens/resident aliens:

$50,000  - $10,900 (standard deduction) - 7000 (2 personal exemptions), leaves  $32,100 as taxable income.

$32,100 of taxable income is $16050 @ 10% (1605), then 15% up to $63100 or $4013 of federal income tax due at the end of the year.

To see a paycheck  calculation, use www.paycheckcity.com.