Re:The Gig Economy Celebrates Working To Excess
by harryh on Thursday March 23, 2017 @12:07PM
(#13941024)
Because of tax incidence. https://en.wikipedia.org/wiki/Tax_incidence
Just because your employer is the one writing the checks doesn't mean that the tax burden is really falling on them. The employer side of FICA, for example, is essentially a tax on employee's income.
How did the employer paying an extra k mean you make more? I think it's only relevant to talk about 2 figures: a) the expense to the employer and b) your take home (net) salary.
Everything in between there is "taxes" and who pays them and when is less important. If the employer needs $9k to hire you that's what it costs. Then the tax man takes $1k payroll, you get $8k, pay $2k income tax. That leaves you $6k after all payroll and income taxes from a starting $9k making the income+payroll taxes 33%.