Annual salary meaning?

Question

I'm about to go to the states to work, they let me know the wage I will recieve in a year. How can I know how much money will I have each month? just divided by 12? minus taxes, benefits? I will aprecciate your complete answer.

Answer 1

Benefits are IN ADDITION to salary. Therefore, the value of benefits you will receive from your employer is above what your pay will be. To arrive at an accurate projected cash flow, divide your anticipated annual salary by 12 to get gross pay per month, then do the following: (1) subtract approximately 7.5 percent for Social Security tax, (2) subtract state income tax of from zero to five percent, depending on which state will be your residence (for example, Pennsylvania, my state, imposes a flat state income tax rate of 3 percent), -- TIP: official state web sites usually have their URL in the format "http://www.state.(two-letter standard postal abbreviation for the state).us". You will usually be able to look up what is your state's individual income tax rate somewhere on the official state web site (for example, for my state, Pennsylvania, the URL is http://www.state.pa.us); (3) subtract your Federal income tax, which can be approximated by doing the following: (a) visit http://www.irs.gov, (b) on the home page, find the link to "Forms And Publications," (c) find the link to "Form 1040: Individual Income Tax Return 2005 INSTRUCTIONS" (2005 is the most recent year available) -- it is an approximately 70-page book in Adobe PDF format, (d) Scroll through the downloaded file approximately 2/3 of the way, to find the pages entitled "Tax Tables," (e) Starting with your ORIGINAL annual projected gross salary figure, subtract an exemption-deduction of approximately 9,000 dollars from it (slightly more of an exemption-deduction if you are married; slightly less of an exemption-deduction if you are single) to arrive at a projected "Taxable Income" figure, and (f) look up your annual Federal income tax in the line opposite the 50-dollar range that pertains to your annual "Taxable Income" prediction; (g) Divide that tax by twelve to get Federal income tax withholding per month.

The result of these three subtractions, I believe, will very closely approximate, within approximately 2 percent, your monthly NET INCOME (cash flow) -- the pay that you will have left as "take-home" (assuming that you do not plan to engage in any sort of business activity outside of your job, or certain other tax-reducing activities for which lower income taxes are designed into the IRS Tax Code, as rewards for entrepreneurship, charitable gifts, energy conservation investments, etc.).

I earn about 29,000 dollars per year, and my take-home pay is about 81 percent of that: the monthly cash (net income) flow works out to about $ 1,957.50 per month.

E-mail me directly by clicking on my Answers name, if any further questions....JackN

Answer 2

Annual Salary Definition

Answer 3

Take the annual amount divide by 52: this will show how much you will make each week. Usually in the states you get paid every two weeks so you can divide the annual salary by 26 to find out what you'd make pre taxes and benefits every pay day. Remember there a few months that you'll end up getting paid 3 times just depends. As far as taxes, it depends on how much you make and how many deductions you take and benefits is hard to say too. I think if you take your biweekly salary (annual salary divided by 26) and take 25% off for taxes and benefits you should have a rough idea of your take home pay. Maybe someone else will have a good idea to figure out how much to take off for taxes and benefits. Good Luck with your new job!

Answer 4

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RE:
Annual salary meaning?
I'm about to go to the states to work, they let me know the wage I will recieve in a year. How can I know how much money will I have each month? just divided by 12? minus taxes, benefits? I will aprecciate your complete answer.

Answer 5

Salary implies you are not paid hourly, so take the annual amount and divide by twelve. You would need to deduct taxes, insurance, 401K and other benefits to determine the net. Estimating taxes could be tricky since you're not a citizen - you may even have to pay US taxes as well as taxes to your homeland. There are also state taxes and sometime county taxes. (Once you've paid your rent, spend the remainder on a cup of coffee.)

Answer 6

yes. annual salary means you get so much money per year no matter if you work 40 HRS. or 80 HRS. a week. they can work your tail of & you get nothing extra. They should give you a breakdown on what your take home pay will be.

Answer 7

It's the amount you're "guaranteed" during a year. Someone may have a "minimum annual salary" of $50,000 per year, with a potential for earning additional bonuses of $10,000.

Answer 8

Well here is an example:

Gross Pay: 1663.34 (Every two weeks or 3326.68 a month)

*Gross is what you are paid before taxes

Subtract Fed tax: 235.19
Subtract Medicare Tax: 24.00
Subtract Benfits: 8.00
Subtract Disability tax: 18.72
Subtract AM FID LTD: 10.72 (Don't know what this is but we all pay it!)

Take home pay after all this: 1366.71

*Give or take a few subtractions depending on where you work.

Answer 9

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My thought would be you are in a non-exempt position. If you only work 40 hours a week that would be your salary but if you put in OT it would be higher.

Answer 10

Here is my suggestion to you. Ask another question on Yahoo,

"Need info from workers in ??_______state? " I'm about to move to----------state and will be earning about $$$__________ gross. What is the usual /or ballpark take home pay for someone like that? And further, can you give me an idea about state and federal income tax for workers in that wage bracket?

Do you think that would help you get more info???