Skip to content
PennyWhys

Filed under

#fica

1 explainer · View all articles →

taxes

Why your biweekly paycheck is smaller than your salary divided by 26

A $75,000 salary divided by 26 yields $2,884.62, but the actual deposit is closer to $1,900. The gap exists because three separate tax bases stack onto the same gross — and one of them won't budge no matter what you contribute to retirement.