Based on typical deductions, how much more per hour would I have to make to earn an extra $900 a month in take home pay, after deductions for taxes ?
2007-08-01 06:54:42 · 6 answers · asked by ironwood9 2 in Business & Finance ➔ Taxes ➔ United States
At $25 per hour, and an 8 hour day, you are making 200 per day, multiply that by about 20 workings day in a month, and you come up with 4,000 per month, before taxes, which is about 160 working hours in a month. divide 900 by 160 and you'd need an extra, after taxes of $5.63 per hour. So probably about another $7.50 - $9.00 or so before taxes.
2007-08-01 07:02:58 · answer #1 · answered by Anonymous · 2⤊ 1⤋
Well, you do the math...there are 2080 hours in a normal work year. That is just a bit over 173 hours per month. Meaning you would have to net $5.20 more an hour after taxes.
Depending on if your married or not there are different numbers to use.
Let's say that your tax rate is 28% and we know the 7.65% for SS/MC. You add those together and subtract from 100% and then divide that into the net you need. In this case it would be about $8.08 a hour more.
And that is assuming there are not state taxes...or other deductions.
But you have the formula now and can calculate it if there are state taxes involved....simply add it to the other taxes and do the same thing..
This is called grossing up...it is a very accepted practice in government and government contractors...to account for any additional taxes. It is their formula so it is beyond question.
2007-08-01 14:30:11 · answer #2 · answered by Russ B 6 · 0⤊ 0⤋
If you are not married, you are in the 25% federal tax bracket. Add to this approximately 8% for Social Security and Medicare, and 5% for state income taxes and other miscellaneous taxes. Roughly, 40% of your pay will go to taxes.
So if you want an additional $900 a month, you are going to have to earn an additional $1500 a month. This comes to approximately an additional $10 an hour.
2007-08-01 21:05:32 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
$25 an hour is a very good wage for a temp.
Assuming you find a new job that pays the same, and that you are working full time and the new job would be the same number of hours, you'd probably have to make about $32-$34 an hour to get an extra $900 take home pay.
That's just a rough guess, without knowing your filing situation or your state.
2007-08-01 14:09:13 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Depends on the state you live in
2007-08-01 13:57:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
About $8.25/hr if you are working full time.
That's "about", and it would depend on your tax bracket and of course the number of hours you work.
2007-08-01 14:04:29 · answer #6 · answered by Baccheus 7 · 0⤊ 3⤋