Wages without Social Security are calculated this way, did you know?

Want to understand the numbers game on the paycheck? In fact, there is a little secret: wages do not include social security ＠ ）X quick deductions *; tax rate 5000. below, let's look at the specific use of this little secret.

The formula for calculating the pre-tax salary

The part of the salary that does not include social security = (X number of accelerated deductions) / tax rate of 5000. This formula can help us quickly calculate the specific value of the pre-tax salary.

For example

Suppose X = $500, which is greater than the maximum deduction for bracket 2, but less than the maximum deduction for bracket 3, then the tax rate has to be taken as bracket 3. In this case, the portion of the pre-tax salary that does not include social security is (500 + 555) / 20% + 5000 = $10,275.

Become a financial gadgeteer

Mastering this little secret allows us to better understand the numbers on our paychecks and become financial gadgeteers. Share it with your buddies and learn together!