Is the tax-rate for a full-time employee on salary vs. full-time employee paid hourly the same?

Question

This question is strictly based upon the tax-rate for a full-time employee on salary vs. a full-time employee paid hourly.

Please assume that they have the same tax information and earn the same amount of money when the salary is converted to an hourly rate or vice versa.

Answer 1

Tax rates are based upon the income, not the classification of the employee. An employee on salary who is converted to hourly and earns the exact same gross pay will pay exactly the same amount of tax.

Answer 2

Tax rates in the US are set according to total estimated annual income. The more you earn the higher the applicable tax rate.
If you paid hourly and will earn $52,000 ($1,000 per week) you will pay the same rate as a salaried employee that makes $52,000 that way. If you double that salary the tax rate will be the same no matter how you earn the money.

Answer 3

Hourly or salary make absolutely no difference. The tax rate is simply based on the amount of taxable money earned in each paycheck.

Answer 4

Yes, if their circumstances were all the same, and their total income for the year was the same, then there taxes would be also. There is not a different tax rate for salaried income vs. hourly.

Answer 5

Taxes are deducted from a salary according to your personal financial situation. Let me explain:

When an employer deducts taxes before issuing a paycheck, they use a code that is based on your overall earnings, your situation (married, with children, without children, single, etc.)

So yes, it is possible that someone who earns the same amount of money will be taxed differently or the same, no matter how they are paid.

Answer 6

Hourly vs salary has nothing to do with taxes. The only factors are how much money you gross, and how many dependants you claim.

Answer 7

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RE :Is the tax-rate for a full-time employee on salary vs. full-time employee paid hourly the same?
This question is strictly based upon the tax-rate for a full-time employee on salary vs. a full-time employee paid hourly.

Please assume that they have the same tax information and earn the same amount of money when the salary is converted to an hourly rate or vice versa.
Follow 7 answers

Answer 8

Taxes are dependent upon how much you make overall (Gross).