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udgeting
BUDGETING 101
So you’ve accepted a great job offer and are ready to get to work. You have been living on a student budget for so long and
it is tempting to believe your money problems are now over. You rush out and lease a fancy apartment and buy a new car,
right? Wrong! The salary offer you received and the amount of money that actually shows up in your paycheck are drastically
different.
Here is why:
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FederalTaxes
Retirement
State Taxes
Insurance Premiums
Social Security Withholding
Federal Taxes
Take Home Pay
ANNUAL SALARY: $30,000
YOUR TURN:
Federal Taxes (annual): $3,600
Sliding percentage based on
base salary
(12% tax bracket illustrated in example)
State Taxes (annual): $1,600
In SC, 0-7%
tax rate
depending on income
(approximately 5.3% illustrated in example)
Social Security (annual): $1,860
Current
federal rate
is 6.2%
Insurance Premiums (annual):
$2,400
Your contribution for health and dental insurance
varies - be sure to ask!
Retirement: $1,500
It is essential to save for retirement. Join your
employer's plan ASAP (5% illustrated in example)
Other Withholdings:
Employers can withhold fees for parking, uniforms,
fitness membership, etc.
Total Withholding: $10,960
Take Home Pay (Net Pay):
$19,040
Salary minus withholding
Monthly Paycheck (Net/12):
$1,587
Some employers pay monthly; budget wisely and
monitor your spending
Bi-weekly Paycheck (Net/26):
$732
Many employers pay bi-weekly or twice per month
Weekly Paycheck (Net/52): $366
Fewer employers pay weekly