One of the most shocking things, when you get your first paycheck, is how small it really is. Here’s why — and what you need to know.
Additionally, Social Security and Medicaid are withheld from your paycheck during every pay period. Withholdings are an amount from your paycheck taken out to pay federal income taxes. They are dependent on not only your income, but also your number of dependents, which, if you're right out of college, is typically 0 or 1.
To figure out what the take-home pay would be in that scenario, simply multiply the salary times 0.70. And, it's important to make sure you're enrolled in direct deposit, so your paychecks are automatically transferred to your bank account. However, if you can't stay on your parents' plan, and you don't yet have a job that offers health care, there are many different options. Bera said she recommends finding a plan that best fits your situation. So, if you only go to the doctor once a year and do not anticipate high health-care costs, Bera said to consider opting for a high deductible health-care plan.typically has a lower monthly rate but then requires you to cover more of your health-care costs yourself.
On the other hand, if you already know you have health-care issues and see doctors more frequently, you might consider a low-deductible plan — those have higher monthly costs but lower deductibles and therefore more robust coverage. If your company offers one, you should absolutely take advantage of it. First, because your are able to invest with pretax dollars but also because a lot companies will match up to a certain amount. You have to decide how much you want to put in – and you need to try to max out the company matching. That's where if you put in, say, 6% of your salary, they match it with another 6%.
"I have a lot of clients regret not starting with their first job because they would have so much more money if they didn't start in like their third or fourth job," she said. "It's something of importance," Menghini said."And something I think, you know, college graduates should start [saving] as soon as they possibly can.""You're just starting out," Boneparth said."The goal here is to build as strong a foundation for yourself as humanly possible. So the first thing I would recommend anyone do is understand their paycheck ... how much money you have coming in each month," and what you have going out.
If you are a salaried employee, where the company takes taxes out, you'll get a W2 form. If you are freelance or part time, you will either get a W2 or if the company doesn't take taxes out, a 1099 form. The downside of being 1099, as we've established, is that you pay a higher tax rate. But on the positive side, you can take more deductions, which will help you to either get a bigger return or, if you owe taxes, pay less.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Adorable and practical toddler suitcases your little one will loveHaving their own little case to keep their treasured items safe is a great way to give them a taste of independence
Read more »
Alleged child rapist bites one police officer and fights off another before escapingMr Metz is reportedly still at large after his escape
Read more »
How One Indian Brand Is Reimagining Waste While Preserving Traditional CraftsmanshipJaipur-based label Iro Iro has embraced a fully circular approach to design as well as supporting local weavers.
Read more »
I'm an Apple expert – turn on iPhone setting that could save your life one dayYOUR iPhone has an amazing map trick that everyone should know. It’s being shared on TikTok as a safety tip – and parents will definitely want to learn how to use it. The feature is called Sh…
Read more »