Orange County NC Website
Browse       Search
Q.A <br /> A4r. Neal Evans <br /> october 13, 1980 <br /> page 4 <br /> Year of <br /> $10, 000 $20,000 $30.000 <br /> Reti�.�reCnen bl w New Law Cfl, d Law tqe w Old Law Te_�s Lawt <br /> 1978 52.4% 52.4% 31.9% 31.9% 21.2% 21.2% <br /> 1983 58.1% 48.4% 35.4% 30.3% 23.6% 20.6% <br /> 1988 61.1% 48.0% 37.2% 30.9% 24.8% 21..4: <br /> 66..1% 47.7% 41.6% 32.1% 27.7% 22..0'X <br /> 1998 47.0% 33.6% 37,_4% 24_7% <br /> 2098 74.8% 47.6% <br /> 51.2% 34.0% 34-1In 25..5% <br /> 2018 83.0% 46.7% <br /> FICA IIurtlier Explained <br /> By paying the 'FICA tax directly for its employees, OrangesCOunt3 <br /> can eliininate the FICA tax expense on the portion <br /> deducted far FICA tax_ In the following example, <br /> that amounts <br /> to 6.13°.' .of $613. In other words, SAVINGS ARE GENCRATED SY NOT <br /> FAYING PICA TAXES oN THE FICA .TAX. <br /> Example cif FICA II Accounting Change for Employee Earning $10.000• <br /> Prouosed-PaYrall _SyStem <br /> Present Pa ro11 S stem -- --•-- <br /> 11--2 Earnings $ <br /> 10,000.00 W-2 Earnings $3.0,0!?0.0 <br /> Current Salary <br /> $10,000.00 Salary, as adjusted 9,.4.22.41(A) <br /> Less: FICA paid <br /> by EmplooyA yee 613. ~0- <br /> Less: F - paid 00 by employee <br /> After PICA After FICA $ 3.422.41 <br /> Net Fay $ 9,3B7.00 Net Pay <br /> Less: Income tax 1,800.00 Less: Income Tax 1,800.OLk(B; <br /> Net Pay Net Pay <br /> 7,587.00 (Take-home) <br /> 7 622.41{�. <br /> (Take-home} �,.^ <br /> $7,622.41 <br /> --7 5B7.00 <br /> Increase in Net Pay <br /> (A) Salary is adjusted as follows: <br /> Current Salary $10.000.00 <br /> Less: FTC--A formerly 613_00 <br /> paid by employee <br /> Add: FICA savings on 35.41 <br /> reduced salary $ 9,422.41 <br />