Learning about payroll will help you to understand your own paycheck and if you are ever responsible for the payroll in a company, it will help you to know how to keep track of the payroll records. You have to pay the U.S. Government, State government, as well as for medical insurance. You may also have a deduction taken out of your pay for retirement (a look into the future when you will be able to retire from work - you will get this money back sometime between the ages of about 67 years and 75 years of age - depending on your plan). The amount of money that the government (both... Show more Learning about payroll will help you to understand your own paycheck and if you are ever responsible for the payroll in a company, it will help you to know how to keep track of the payroll records. You have to pay the U.S. Government, State government, as well as for medical insurance. You may also have a deduction taken out of your pay for retirement (a look into the future when you will be able to retire from work - you will get this money back sometime between the ages of about 67 years and 75 years of age - depending on your plan). The amount of money that the government (both federal and state) takes from your paycheck depends on a number of factors. These include: (1) how much money do you make; (2) are you single or married; (3) if you are married, how many dependents do you have (dependents include your spouse, children and even parents if they are living with you); how much money is being taken out for retirement purposes or transportation purposes, medical insurance, etc. The federal government takes money from you for three categories. These include your “federal tax”, your “social security tax”, and your “Medicare” tax. (Medicare is the government’s health system for people when they retire - you will not see this money come back to you once you retire (sometime in your 60s), you will receive some government medical insurance coverage - called Medicare). The amount (or percentage) that is taken out changes each year so what is taken out in 2022 will be different from what was taken out in 2023 and what will be taken out in 2025 will be different from what was taken out in 2024. Show less
Learning about payroll will help you to understand your own paycheck and if you are ever responsible for the payroll in a company, it will help you to know how to keep track of the payroll records. You have to pay the U.S. Government, State government, as well as for medical insurance. You may also have a deduction taken out of your pay for retirement (a look into the future when you will be able to retire from work - you will get this money back sometime between the ages of about 67 years and 75 years of age - depending on your plan).
The amount of money that the government (both federal and state) takes from your paycheck depends on a number of factors. These include:
(1) how much money do you make; (2) are you single or married; (3) if you are married, how many dependents do you have (dependents include your spouse, children and even parents if they are living with you); how much money is being taken out for retirement purposes or transportation purposes, medical insurance, etc.
The federal government takes money from you for three categories. These include your “federal tax”, your “social security tax”, and your “Medicare” tax. (Medicare is the government’s health system for people when they retire - you will not see this money come back to you once you retire (sometime in your 60s), you will receive some government medical insurance coverage - called Medicare).
The amount (or percentage) that is taken out changes each year so what is taken out in 2022 will be different from what was taken out in 2023 and what will be taken out in 2025 will be different from what was taken out in 2024.
Join 4M+ learners. Unlock unlimited quizzes, wrong-answer tracking, flashcards + reminders, study guides, and 1-on-1 challenges.