Hi,

I am working for a consultancy company here in San Diego. They will be paying me $35/hour . Now considering the normal hours worked per week are 40, can anyone calculate or let me know the total in hand I will be getting per month. My payment is made bi-weekly. I know I do not have to pay Medicare and Social Security taxes. But I want to know an approx amount that I would be getting per month or per paycheck(bi-weekly) if I want to continue with this consultancy. Thanks a lot in advance. (This is for the state of CA)

Your annual pay is about $70,000 per year.

Assuming you are single and from India (which allows you to claim the standard deduction), you annual federal income tax liability is about $11,000 and your California tax liability is $3,650.

Exactly how much is WITHHELD from each paycheck depends on how you complete the Form W-4 for the federal tax and the California equivalent form for the California tax.

Can you help me understand exactly how that works out. Here are my calculations

$35/hour * 40 hrs/week = $1400 per week.

Now there are 52 weeks in a year , so $1400 * 52 = $72800 per year.

You are saying it is about $70,000. I assume you are incorporating holidays and all ? Am I correct in thinking ?

I have already filled my W4 form and submitted to my employer. I have put only 1 as the # of allowance claims in box 5 . No other claim exemption.

I am single and no dependents. Am I right uptill now ?

I am also subject to California SDI. Did you take into account that also. If not , how much of a charge they are per month ?

No, I did NOT consider SDI, as I did not know the withholding rate.

I am curious as to how you came about $70 000 being my annual pay ?

Your exemption on the W-4 of ONE with SINGLE status is exactly right.

The $70,000 figure is $35 per hour X 2000 hours (roughly what everyone works in the U.S. in a typical year).

Quote:

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Originally Posted by AtlantaTaxExpert

Your exemption on the W-4 of ONE with SINGLE status is exactly right.

The $70,000 figure is $35 per hour X 2000 hours (roughly what everyone works in the U.S. in a typical year).

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Thanks a lot !

Glad to help!