CINCINNATI, OH--(Marketwire -01/26/12)- Tax and payroll laws are constantly changing and it can be a challenge to keep up. With this challenge in mind, Paycor has released an infographic that details the six common payroll deductions for the American worker: federal income tax, Social Security, Medicare, state income tax (if applicable), wage garnishment and other deductions.
"As a payroll or HR specialist, having a complete and easy to read reference guide for payroll and tax deductions at your fingertips is a valuable resource," said Karen Crone, Chief Human Resources Officer for Paycor. "This infographic explains a complex and heavily regulated topic in a way that's easily understood."
Many American workers are unaware of the details of their payroll deductions, which can prevent them from pointing out any paycheck errors. Here are some main points about common deductions:
- Federal income tax brackets range from 10 to 35 percent, depending on an employee's amount of taxable income.
- Self-employed workers pay higher contribution rates for Social Security and Medicare, while employees at companies split these contributions with their employer.
- State taxes range considerably depending on where you live. Nine states don't collect income taxes, while other states collect incremental tax rates as high as 11 percent.
- If an employee has debt problems, employers can be instructed to withhold a specified amount from the employee's paycheck. Both state and federal laws can come into play with such wage garnishments and assignments.
- Other payroll deductions include cafeteria plans, Health Savings Accounts or Flexible Spending Accounts, standard health or dental deductions, dependent care, uniform and charity.
Paycor was founded in 1990 with a desire to provide a client-service focused payroll experience. The company has grown over the past two decades into an industry leader with more than 20,000 clients throughout all 50 states. Today it is one of the nation's largest independently-owned payroll service providers with offices from Chicago to Tampa Bay. Paycor is the recipient of the 2011 People's Choice Stevie® Award for Favorite Customer Service in the financial services industry.
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