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3 points

No, 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.

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-2 points

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)

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3 points
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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).

Edit for replies: yes, they pay payroll tax but that is based on payroll, and is a percentage of payroll. The other replies were referring to bottom line tax and revenue/profit. Maybe I should have been clearer but I was trying to keep it easy and not muddy the waters.

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0 points

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.

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1 point

Companies pay tax on employees as well.

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Work Reform

!workreform@lemmy.world

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A place to discuss positive changes that can make work more equitable, and to vent about current practices. We are NOT against work; we just want the fruits of our labor to be recognized better.

Our Philosophies:

  • All workers must be paid a living wage for their labor.
  • Income inequality is the main cause of lower living standards.
  • Workers must join together and fight back for what is rightfully theirs.
  • We must not be divided and conquered. Workers gain the most when they focus on unifying issues.

Our Goals

  • Higher wages for underpaid workers.
  • Better worker representation, including but not limited to unions.
  • Better and fewer working hours.
  • Stimulating a massive wave of worker organizing in the United States and beyond.
  • Organizing and supporting political causes and campaigns that put workers first.

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