Understanding your first paycheck

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So i got a little preview to my first paycheck which will be released at the end of the month and I’m a little confused about it and so I went ahead and spent some time researching the various aspects of a paycheck.

In the emory paycheck, there is the gross monthly pay. This is the amount of money that you made for that month. Yes people, I get paid monthly and not biweekly. There is a small blip that shows the tax data and how many allowances that I’m allowing for myself for both federal and state. The paycheck summary includes the taxes and the net pay after taxes.

Gross Pay = monthly pay
Federal Allowances = I know you guys might make fun of me but I decided to give myself 6 allowances. The reason behind this is because for this fiscal year, I have a lot of tax deductions that I’m expecting to take into account.
Payroll taxes This is the taxes that are withheld from your paycheck. OASDI stands for old age survivors and disability insurance. Social security and medicare taxes are known as FICA taxes that must be withheld from your paycheck. The employer also puts a match to your taxes as well. It currently runs at 6.2% so you pay 6.2 % of your paycheck and your boss pays 6.2% of your wage also. The good thing for those that make a lot of money is that once you make more than 97,500 dollars, you don’t owe any more social security tax.

The medicare tax rate is 2.9% and the employer also matches that. There is no wage limit for medicare.

There is also a withholding for Federal Tax and State tax. The federal tax rate schedule is

Schedule X — Single
If taxable income is over– But not over– The tax is:
$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850
$349,700 no limit $101,469.25 plus 35% of the amount over 349,700

Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)
If taxable income is over– But not over– The tax is:
$0 $15,650 10% of the amount over $0
$15,650 $63,700 $1,565.00 plus 15% of the amount over 15,650
$63,700 $128,500 $8,772.50 plus 25% of the amount over 63,700
$128,500 $195,850 $24,972.50 plus 28% of the amount over 128,500
$195,850 $349,700 $43,830.50 plus 33% of the amount over 195,850
$349,700 no limit $94,601.00 plus 35% of the amount over 349,700

Schedule Y-2 — Married Filing Separately
If taxable income is over– But not over– The tax is:
$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $64,250 $4,386.25 plus 25% of the amount over 31,850
$64,250 $97,925 $12,486.25 plus 28% of the amount over 64,250
$97,925 $174,850 $21,915.25 plus 33% of the amount over 97,925
$174,850 no limit $47,300.50 plus 35% of the amount over 174,850

Schedule Z — Head of Household
If taxable income is over– But not over– The tax is:
$0 $11,200 10% of the amount over $0
$11,200 $42,650 $1,120.00 plus 15% of the amount over 11,200
$42,650 $110,100 $5,837.50 plus 25% of the amount over 42,650
$110,100 $178,350 $22,700.00 plus 28% of the amount over 110,100
$178,350 $349,700 $41,810.00 plus 33% of the amount over 178,350
$349,700 no limit $98,355.50 plus 35% of the amount over 349,700

You can find your individual state tax rate on this website In georgia, the tax rate is 6%

There another great website to calculate your paycheck based on how many withholdings you put down on your W-4.

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