The Taxberg
$1,549
Net pay
$140
Tax the employer pays
$451
Tax you pay
Total tax paid
$591
Did you know your employer also pays tax on your salary? It costs the employer $140 to pay you $2,000. In other words, every time you spend $10 of your hard-earned money, $2.96 goes to the government.
Real tax rate
27.6%
So, with you and the employer both paying tax, what used to be a 22.5% tax rate now rises to 27.6%, meaning your real tax rate is actually 5.1% higher than what it seemed at first.