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It's important to keep track of how much you've earned throughout the tax year. Here's how net pay works and its difference from gross pay.
For example, in 2017 an employee works two jobs (either concurrently or consecutively) paying $70,000 each. Since each employer calculates the social security taxes independently, each employer will withhold 6.2% of the $70,000 employee’s salary, or $4,340, for a grand total of $8,680 -- which exceeds the cap of $7,886.40 by $739.60.
Make a habit of comparing your salary or wages to similar positions at other companies by talking to recruiters in your industry — but don’t rely on job postings alone.
The pay scale was originally created with the purpose of keeping federal salaries in line with equivalent private sector jobs. Although never the intent, the GS pay scale does a good job of ensuring equal pay for equal work by reducing pay gaps between men, women, and minorities, in accordance with another, separate law, the Equal Pay Act of 1963.
Trade unions generally seek to reduce wage dispersion, the differences in wages between workers doing the same job. [3] Not all unions are successful, however. A 2008 study of collective bargaining agreements in the United States found that 25% of the union contracts surveyed included a two-tier wage system. [3]
How much should you pay yourself? Small business owners in the United States make between $83,000 to $126,000 on average, depending on their industry and location. Keep in mind that many business ...