Only 65% of gross income take home?

[Rike255]

So I just started my new (and first) full time job , and it looks like only approximately 65% of my gross income is actually take-home. Is it normally this high?

Here are all of the deductions (I hope) from my paycheck:

Local Authority Pension Plan (LAPP): 7.46%
Federal/Provincial Income Tax: 18.86%
Canadian Pension Plan: 4.95%
Employment Insurance: 1.73%
Benefits: ~2.2%

Am I missing something or is this normal (for Canadians at least)?

[mikejet]

Wow dude, Canadian taxes are worse than the US.

SUCKS

[My_Two_Cents]

Originally Posted by mikejet

Wow dude, Canadian taxes are worse than the US.

SUCKS

Gotta pay for that "free" healthcare.

[toef]

Originally Posted by Ricshoe

Gotta pay for that "free" healthcare.

If your job provides healthcare benefits, it's not "free" either... they just pay you a lower salary, instead of showing it as a deduction.

[supersix4]

Originally Posted by toef

If your job provides healthcare benefits, it's not "free" either... they just pay you a lower salary, instead of showing it as a deduction.

Yeah I know if I worked I'd rather pay like 0-3,000 in taxes for little/no HC costs then see the premiums my parents have had to pay which are well over 5k and rising.

Originally Posted by master_8ball

My benifits covers 85% of prescriptions and dental care, and $400 every 2 years for glasses. No changes based on how much you use them.

lol sweet could you get prescription sunglasses? New prada's every 2 years would rock

[Rike255]

Originally Posted by master_8ball

Pension = 7.8%
Federal/Provincial Income Tax= 17.8 %
CPP (Canadian Pension Plan) = 4.7%
Employment Insurance= 1.73 %
Union Dues = 1.3 %

I take home 66% of my salary. This breakdown does not include my benifits, my health and vision $32.64 for all of last year so that doesnt make much of a difference.

So you have an extra 1% on income tax which could be an Alberta/Ontario difference or you may make more coin than I.

Originally Posted by Ricshoe

I looked at mine:

Fed/State/Local Tax: 12.50%
FICA/Medicare Tax: 7.05%
Benefits Costs: 4.87%

Other deductions (paying myself)
Flexible spending: 3.90%
401K: 7.00%

Add it up, and I'm only bringing home 65% of my gross, also.

Ok so it is pretty standard. I had no idea that much came off, like I said never worked a full-time permanent job before. Thanks!

Ya "free" healthcare isn't really free. My benefits are very good, but unfortunately a lot more than I want/need. If something unexpected happens I'll be glad to have it, but for now it's money spent on nothing.

[supersix4]

Originally Posted by mikejet

Wow dude, Canadian taxes are worse than the US.

SUCKS

lol depending which tax bracket you're in my dad gets clipped wicked hard lmao.

He's at 35% fed and 5.5% for state

Thank god for deferred income a small benefit lol.

[KASR]

My take home averages around 77%

[Rike255]

Originally Posted by mikejet

Wow dude, Canadian taxes are worse than the US.

SUCKS

Ya, I was completely floored when doing these calculations, which is why I thought for sure I messed it up somehow.

Could have made more money working part time and not contributing to all these bull**** plans. I want to let future me worry about pensions!

[My_Two_Cents]

I looked at mine:

Fed/State/Local Tax: 12.50%
FICA/Medicare Tax: 7.05%
Benefits Costs: 4.87%

Other deductions (paying myself)
Flexible spending: 3.90%
401K: 7.00%

Add it up, and I'm only bringing home 65% of my gross, also.

[mikejet]

Originally Posted by Ricshoe

I looked at mine:

Fed/State/Local Tax: 12.50%
FICA/Medicare Tax: 7.05%
Benefits Costs: 4.87%

Other deductions (paying myself)
Flexible spending: 3.90%
401K: 7.00%

Add it up, and I'm only bringing home 65% of my gross, also.

I was going to get a FSA but since my wife and I use Kaiser I didn't see a need for it.

Does your FSA allow the balance to roll over into the next year?

[fatediesel]

Originally Posted by mikejet

I was going to get a FSA but since my wife and I use Kaiser I didn't see a need for it.

Does your FSA allow the balance to roll over into the next year?

It isn't legal to roll money over from year to year with an FSA. An HSA will allow you to roll money over from year to year. My company currently has an FSA but our health insurance renewal was going to go up 32% so now we are looking at an HSA plan. The max amount you are allowed to put in an FSA is going to drop in 2013 to $2,500 due to health care reform, whereas HSA was not affected by the health care reform and the max is currently $3,050 for individuals and $6,150 for families.

[My_Two_Cents]

Originally Posted by mikejet

I was going to get a FSA but since my wife and I use Kaiser I didn't see a need for it.

Does your FSA allow the balance to roll over into the next year?

No, that's an HSA. The FSA is a "use-it-or-loose-it" deal (why it's like this, I have NO idea). With a family of five, we have enough out of pocket costs to justify having some amount taken out annually. I've done this long enough to have a pretty good understanding of how much we spend each year. This year I increased it because my youngest got braces and I wanted to cover my ~$2900 portion with tax-free money.

[master_8ball]

Pension = 7.8%
Federal/Provincial Income Tax= 17.8 %
CPP (Canadian Pension Plan) = 4.7%
Employment Insurance= 1.73 %
Union Dues = 1.3 %

I take home 66% of my salary. This breakdown does not include my benifits, my health and vision $32.64 for all of last year so that doesnt make much of a difference.

So you have an extra 1% on income tax which could be an Alberta/Ontario difference or you may make more coin than I.

[supersix4]

Originally Posted by master_8ball

I take home 66% of my salary. This breakdown does not include my benifits, my health and vision $32.64 for all of last year so that doesnt make much of a difference.

lol crazy you're health and vision was 32 bucks! does that go up if you use it allot or is that like a flat cost for every year?

lol dads meds alone are 500 a mo.

[master_8ball]

Originally Posted by supersix4

lol crazy you're health and vision was 32 bucks! does that go up if you use it allot or is that like a flat cost for every year?

lol dads meds alone are 500 a mo.

My benifits covers 85% of prescriptions and dental care, and $400 every 2 years for glasses. No changes based on how much you use them.

[bluRazor]

Originally Posted by Rike255

So I just started my new (and first) full time job , and it looks like only approximately 65% of my gross income is actually take-home. Is it normally this high?

Here are all of the deductions (I hope) from my paycheck:

Local Authority Pension Plan (LAPP): 7.46%
Federal/Provincial Income Tax: 18.86%
Canadian Pension Plan: 4.95%
Employment Insurance: 1.73%
Benefits: ~2.2%

Am I missing something or is this normal (for Canadians at least)?

thats about what im taking home (u.s.) & i dont have a pension plan or 401k.
i also accidentaly claimed 1 so by my understanding they should be taking less out of my check. i know my returns have been much smaller.
of course ive also worked about 260 hrs of o.t. this year so that probaly pushs me into a new bracket or something.

[Beta Man]

I wasn't aware that taxes had nothing to do with politics.