Wayne County employees might work for $5.00 an hour!

[313WX]

Federal income tax might be 3 - 4%. FICA is 8%. State a couple percent? City? IDK [[I don't know).

The marginal Federal Income Tax rate at the lowest bracket is 10%, not 3-4%. Someone making minimum wage full time would actually be paying a marginal rate of 15% plus another ~$1,000 on top of their earnings.

The State Income Tax rate is just over 4%, not "a couple percent."

The City Income Tax is 2.4%.

[emu steve]

The marginal Federal Income Tax rate at the lowest bracket is 10%, not 3-4%. Someone making minimum wage full time would actually be paying a marginal rate of 15% plus another ~$1,000 on top of their earnings.

The State Income Tax rate is just over 4%, not "a couple percent."

The City Income Tax is 2.4%.

Yes, federal income tax is 10%, BUT 10% of the income over 10,150.

"If no one can claim you [[or your spouse if a joint return), enter $10,150 if single; $20,300 if married filing jointly." [[this is from the 1040EZ tax form).

So a 8.10 / hour worker pays 10% of less than 7K [[based on 40 hours / week x 52 weeks x 8.10 / hour - 10,150).

My math: 40 x $8.10 x 52 = $16,848 - 10,150 = $6,698 taxable income with a tax of $668. 668 / 16,848 = 3.96%

I come up with a Federal TAX RATE of 4%.

As far as MI and Detroit income taxes, most states and cities provide exemptions and deductions which greatly make the effective rate to much less than the stated rate [[4.25% in MI).

[313WX]

Yes, federal income tax is 10%, BUT 10% of the income over 10,150.

The Federal Income Tax rate is only 10% for earnings up to $9,075. Beyond $9,075 up to $36,900, the Federal Income Tax is 15% plus another $907.50 on top of earnings.

https://en.wikipedia.org/wiki/Rate_s...al_income_tax)

[313WX]

"If no one can claim you [[or your spouse if a joint return), enter $10,150 if single; $20,300 if married filing jointly." [[this is from the 1040EZ tax form).

That exemption is only claimed when filing taxes. It doesn't help a person when they're receiving their paychecks.

[emu steve]

That exemption is only claimed when filing taxes. It doesn't help a person when they're receiving their paychecks.

Okay, okay, okay... I'll print out a 1040EX and complete a tax return [[but won't send it in ). Earlier in this post, I was working off the 1040EX form. I might have made a mistake but I did briefly fill it out. I'll double check my work.

BTW, this is the 1040 tax table I used. Do 1040EZ filers have a different tax table????

http://www.irs.gov/pub/irs-pdf/i1040tt.pdf

As far as exemptions, an employee can claim whatever they want on the W-4 to make their withholding whatever they want.

I'd guess our hypothetical employee would claim say 3 or 4 exemptions.