Accounting people...

[E.intheC]

I have a quick and hopefully easy question:

What's an easy way to figure out take home pay if you get a raise?

For example; let's say you get a $12,000 annual raise (just to make math easy).. That would be an extra $1000/month....

However, there's an increase in taxes, (social security/etc) and obviously a possibility of going to a higher tax bracket. Is there an easy way to figure this out?

Thanks

PS (yes, I feel stupid asking this).. just putting that out there:tongue1:

 

[NYreefNoob]

depends on what tax bracket ur in i lose 160 for every 600

 

[marrone]

Try this web site:

http://www.paycheckcity.com/

You'll need to know your Fed, State and City exemptions and any pre-tax benefits, like 401k or medical/dental co-pay. You also want to fill out a new W-4, as your tax bracket could change.

 

[E.intheC]

Thanks for that link, I'll have to enter some information and check it out.

There's no raise coming, unfortunately.. just looking for a better ballpark if I were to get a new job.

 

[albano]

What's an easy way to figure out take home pay if you get a raise?

Did you receive a tax refund, this year, or owe taxes? :shhh: If you received a refund, adjusting your deductions could give you more 'take home pay'...plus it's foolish to overpay your taxes weekly!

 

[E.intheC]

Did you receive a tax refund, this year, or owe taxes? :shhh: If you received a refund, adjusting your deductions could give you more 'take home pay'...plus it's foolish to overpay your taxes weekly!

I agree albano! I had a very modest refund for my federal taxes, but owed state taxes.. it worked out to about even.

 

[House of Laughter]

E,

I usually add up all my taxes paid and figure out how much that is in percentage to my total salary (let's say it's 30%). I take the anticipated raise amount and reduce it by the same percentage : 12k - 30% ($3600) = $8400 - I then divide that by however many pay periods I get to give me a BALLPARK of what it would do per pay period.

it's a little bit of kangaroo math, but it's generally close enough to make it worthwhile.

HTH

house