Tax Day 2023 and how to get an extension from the IRS
Tax Day is on Tuesday, Apr 18, 2023. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!)
You’ve just graduated college, and likely are furiously sending out resumes in hope of securing that first “adult” job. What makes up your first paycheck and how do you determine it?
You’ve just graduated college, and likely are furiously sending out resumes in hope of securing that first “adult” job. Some recent graduates (maybe even you) held jobs throughout school – whether it was to pay for books, tuition, or other necessities – while others have not. No matter your situation, you may not know all the details that go into your first career paycheck.
For example – what’s FICA? Is that a person, place, or thing? Is a W-4 a piece of paper you only fill out your first day of work? Is this stuff even real?Let’s begin with the W-4.
Known as the Employee’s Withholding Allowance Certificate in the payroll world (and the entire world, but payroll’s likely the only industry that regularly calls it this), this document is a critical piece of any job.
Your W-4 has a direct tie to your bank account, as it tells your employer what taxes to withhold from your paycheck. You fill this out during onboarding, and the most basic questions involve whether or not you’re married, or own a house. These and anything you choose to withhold is called an allowance, and they’re based on the following:
Based on the above, it makes sense that you can change your W-4 to fit your life, right? If you get married during the year, have a child, buy a house, or start saving more for retirement, you’ll likely want these momentous occasions to be reflected in your paycheck.
So, let’s move on to your paycheck.
A general understanding of your pay stub is beyond helpful. Below are the most common terms you’ll find:
Other terms you’ll see on a pay stub (which are determined based on where you live) include federal, state, local, Social Security, and Medicare. These are all payroll taxes, and no can escape all of them. However, if you live in one of these nine states, you can avoid paying state income tax.
Here’s a breakdown of the aforementioned payroll taxes:
Want to learn more or even model a paycheck yourself? Head over to our salary calculator or W-4 assistant and starting getting the answers to your more specific questions.
Tax Day is on Tuesday, Apr 18, 2023. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!)
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