Together these are called FICA taxes, and your employer will pony up a matching contribution. Your employer will withhold money from your paycheck, which means you can’t simply multiply your hourly wage by the hours you worked, or divide your annual salary by the number of paychecks you get per year.įor each pay period, your employer will withhold 6.2% of your earnings for Social Security taxes and 1.45% of your earnings for Medicare taxes.
In that case, your “paycheck,” whether in the form of a check or cash, was simply your hourly wage multiplied by the number of hours you worked.īut once you start working “on the books,” calculating your paycheck isn’t that straightforward. When you were a teenager you may have had a part-time job that paid you under the table. Number of cities that have local income taxes: 0.Median household income in Illinois: $79,253 (U.S.
