
Ask HN: How does payroll work in US? - brtkdotse
I’m trying to do a TCO type analysis of income, taxes and what you get for your money in Sweden and US and it strikes me I have no clue how payroll and taxes work.<p>In Sweden, a decent salary is 50 kSEK (salaries are negotiated per-month rather than per-year). That is pre-income-tax, post-social-taxes.<p>Company cost per month: 50kSEK salary + 16 kSEK payroll tax + 5 kSEK private pension (optional but 99% of all employers offer this)
Employee income: 50 kSEK - 15kSEK (tax)
State gets: 15kSEK (income tax) + 16kSEK (payroll tax)<p>The above is a bit simplified, but accurate. Major benefits are 30 days off, 400 days parental leave,  free health care, free college.<p>How would the company cost&#x2F;employee income&#x2F;state income look in the US?
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sushshshsh
Not able to give a very precise answer but it usually looks like this:

Employee Salary: $100,000 Taxes Payable by Employee: Federal, State, Local,
Payroll (Social Security, Medicare, other Local taxes like NY Family Leave)

Taxes Payable by Employer: Social Security, Medicare, other Local payroll
taxes

Depending on your state, city, income level, married status, children, and
type of worker you are (W2, 1099)... these variables will affect how the
actual rate is calculated.

So suffice it to say that the income tax calculation alone is complicated
enough (to perpetuate the accounting industry of course) and the matter gets
extremely complicated when looking at LLC income, Corporation income, Capital
Gains income which every Robinhood trader now has and of course compliance
with business regulations which is so infinitely complicated that you can
almost never be proactive in facing them and instead can only react to a fine
when you receive it.

EDIT: A single man working in NYC making 100k will have an effective tax rate
closing in on 40%, typically 22% federal, 7% state, 3% local nyc, 7.5% payroll

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verdverm
There's a Yonkers tax in NYC, 9% last time I saw, for people who work in the
city (Manhattan and maybe more?)

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sushshshsh
Not sure of the specifics because I directly engage in not putting myself in
this situation where I would be required to pay this tax ;)

I believe I've heard that anyone leasing or owning a dwelling anywhere in NYC
would pay 3-6% of their yearly income depending on how much they make to NYC.
On top of their rent/property tax of course :)

That is why many of us choose to live in Jersey City or Nassau/Suffolk county,
where in exchange for a longer commute (no problem thanks to COVID-19 now) you
pay less taxes and get a bit more air to breathe and less garbage on the
streets.

As for living in Yonkers and paying the Yonkers local tax, well, I am not sure
why anyone would live in Yonkers ;)

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Spooky23
It depends on your circumstances.

If you own your home, generally speaking, by the time you factor property
taxes, the NYC income taxes aren’t as crazy as they seem. Property taxes are
2.5-4x higher in surrounding areas.

The ROI depends on your specifics. Even in low tax locales like the South,
people get surprised by things like food sales taxes and HOAs that are
responsible for things like sewers.

