The Taxberg
Net pay
Tax the employer pays
Tax you pay
Total tax paid
Did you know your employer also pays tax on your salary? It costs the employer $165 to pay you $2,000. In other words, every time you spend $10 of your hard-earned money, $3.00 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 21.8% tax rate now rises to 27.7%, meaning your real tax rate is actually 5.9% higher than what it seemed at first.