Comment on How Long It Takes the Largest Companies in America to Make One Employee's Average Annual Salary
Efwis@lemmy.zip 7 months agoNo, salaries are based a pre-tax basis. In other words you’re told you’ll make $120,000 per year, that amount is before taxes.
betz24@lemmynsfw.com 7 months ago
But companies also pay taxes before even paying you. So they’ll pay 140k to pay you 120k which you’ll earn 100k (along those lines)
Kaefor@lemmy.ca 7 months ago
They pay tax after paying you.
Payroll is an expense that gets deducted from revenue before calculating taxes.
They pay employer contributions/insurance/deductions but you pay the tax on it. It’s to avoid double taxing that money (corp pays tax and you pay tax).
Blackhole@sh.itjust.works 7 months ago
Companies pay tax on employees as well.
betz24@lemmynsfw.com 7 months ago
I have run payroll myself. When you run payroll, a company pays taxes to the government. Every paycheck. There are taxes the company is liable for and not employees.