Taxes
How much will you loose?
Do you wonder where your hard earn money is going?
There are several taxes that everyday people have to pay for through their job. How much is you have to pay, is based on how much you make. You will always be taxed by a Federal withholding tax, a State withholding tax, and the FICA tax.
Federal and State Withholding Taxes
Federal Withholding Tax: This tax is required by law and the money collected is used for government purposes like the Military, or other government departments.
State Withholding Tax: This type of taxation is also required by law and the money gathered from this tax is used for local and state purposes like road construction.
Types of Taxation
FICA
FICA is composed of Medicare and Social Security taxes. Medicare is the government's healthcare program for the disabled and elderly. This part of the tax is 1.45% of your gross pay. Social Security is the government's retirement program. This part of the FICA tax is 6.2% of your gross pay. The FICA tax is required by law and is 7.65% of your gross pay.
Retirement Plan
The Retirement Plan isn't a total taxes because it is only benefiting you, but it is still taking money out of your gross pay. A Retirement Plan is optional and you choose how much you take out of your pay check for it.
Medical Plan
The Medical Plan is also not a total taxes because you don't have to pay for it. You can have a medical plan either by a medical company or through your career or job, which would obligate you to pay for one.
Guaranteed to make you hate taxes!
Frequently Asked Questions
Q: What is the reason for all of these taxes?
A: The government getting its money to spend from the poeple, and the way they collect this is trough taxes.
Q: How much will your taxes be?
A: It all depends on how much you make; the larger your groos pay, the more you pay.
More Questions?
Contact the Federal reserve yourself! I;m sure they would love to answer any of your questions!
Location: Constitution Ave NW, Washington, DC
Phone: (202) 452-3000