I’m Paying What?!?!

WARNING:   Participating in the below activity can lead to increased blood pressure, frustration, and possibly anger.

Have you ever given much attention to the deductions from your paycheck?

Here’s what I know.   If you don’t personally pay the bill and an expense is paid out of your paycheck before you ever receive it, chances are REALLY HIGH that you will be shocked to discover how much you are really paying!

I challenge you to pull up your paystub from the last paycheck you received in December 2010 and look at how much has been taken out BEFORE you ever received the check.

How much did you pay last year for:

  • Federal Income Tax
  • Social Security Tax
  • Medicare Tax
  • State Tax
  • Local Tax
  • Insurance Premiums

Now take those amounts and divide them by how much you were paid last year.   What percent of your pay was taken out to pay for taxes and insurance?   After you have taken your heart medicine, would you mind sharing your percentage in the comments?

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14 Responses to “I’m Paying What?!?!”

  1. Jeff Plain January 17, 2011 at 11:00 am #

    25.9% for me, which includes Family Insurance coverage.

  2. Kaleb Barker January 17, 2011 at 9:42 pm #

    18.9% here, or 27.5% if you include my HSA contributions.

  3. Gary Oliver January 18, 2011 at 4:40 am #

    25% for me.

  4. Randy January 18, 2011 at 4:54 am #

    A large part of my pay is commissions which is subject to higher withholding, so I’ll probably get a refund.

    If I look just at the taxes it’s 25%.
    If In include life & health insurance amounts and health spending accout, i’t up to 29%. (I don’t think these should be included because they are voluntary – at least for now).

  5. Jackie January 18, 2011 at 6:33 am #

    I’m pushing a lot into my 401K (before tax) so it puts me about 24%. But if I figure it on my total taxable income it puts it at 27% (Ugh!)

  6. Brett January 18, 2011 at 6:47 am #

    35.6% just for the items requested. This does not include 401k or PSP payments..

  7. Bryan January 18, 2011 at 8:11 am #

    30.5% for the items you requested. I don’t know what has made me more sick to my stomach this morning, being in Juarez or seeing 30.5%.

  8. Kari January 18, 2011 at 8:39 am #

    28% :(

  9. Jay January 18, 2011 at 9:02 am #

    Don’t forget to subtract your refunds (state and federal income). Then be mad you haven’t updated your withholding forms.

  10. Kay Harmon January 18, 2011 at 10:39 am #

    Last fall, about a year after being hired, I finally got around to reviewing my life insurance premiums. I work for the Feds. Years ago it was around $10 to multiply my coverage. I’m now 58. So I was shocked to discover I was paying around $40 for the extra coverage. That’s per pay period and amounted to 3% of my pay. I changed my coverage to basic and in doing so gave myself nice raise.

    Of course your seminar last spring inspired me to do it, but my procrastination cost me $560.

  11. James Mallonee January 19, 2011 at 12:08 pm #

    My total was 31% for State, Federal, and Social Security. Not including health insurance or TSP. Insurance (life and health) was another 1.5% It didn’t help that I was deployed to Afghanistan and worked 12 hour days for 6 months.

  12. jsangl January 21, 2011 at 12:11 pm #

    Joe Sangl here …

    Has it changed your perspective at all? Are you making any changes as a result of the percentage you just calculated?

    Joe

  13. Kenneth January 21, 2011 at 1:39 pm #

    28% from this teacher

  14. David R Walker January 21, 2011 at 2:14 pm #

    I am still mad that I paid my vehicle tax at all, much less with money that had already been taxed.

    I am making my vote count from now on.
    Lower taxes and NO Gov. in health care!

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