He decided they needed to keep "committed expenses" at or below 60% of their gross income (their salary before taxes) to come out ahead at the end of the month.
Today, we face a myriad of legally prescribed obligations to employees, such as paying salary, withholding taxes, accommodating the disabled and maintaining a safe work environment.
But federal taxes on salary and other ordinary income are comparatively low now.
During the 20 years I have been calculating the values of NHL, NFL and NBA teams two of the constants have been a ratcheting up of salary restrictions on athletes via salary caps and payroll taxes, and a growing spread in team values within each league.
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The IRS is well aware that many owners of S corporations are tempted to underreport salary to avoid paying payroll taxes, while taking a hefty payroll-tax-free dividend.
Owners of S corporations can reduce their overall tax bill by paying themselves a salary, subject to payroll taxes (Social Security and Medicare taxes), and then taking a dividend, which is distributed free of employment taxes (and, again, isn't subject to the corporate tax rate).
Although lower taxes make the U.S. salary look like a better deal compared to the Nordic salaries, the higher taxes in these countries are channeled into providing a high standard of free education and universal healthcare so there is a public service benefit.
As your salary increases, you pay more taxes even as you can afford less.
You can see that, with those numbers, an additional salary could easily be eaten up in taxes and childcare.
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Not only do your taxes go to pay the salary of the fireman, but, when he spends it, his salary contributes to your wages.
If the Bush tax cuts expire, he will pay about a nickel more in taxes on the dollar of salary he earns each year but not a penny more on his billions of appreciation.
Higher level officers would not pay taxes on the portion of their salary equal to the top senior enlisted members' amount.
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Of course, even a shareholder who pays himself a substantial salary can enjoy the benefits of reduced payroll taxes by virtue of Revenue Ruling 59-221.
The child's salary then helps reduce the total amount of income taxes the parent pays.
Presumably Mr. Buffett could adjust their incomes to include more dividend income or to defer more income from taxes each year by use of a salary-deferral plan, as well.
Wisconsin, by contrast, taxes private retirement payments, as it does salary and other income, at 5.6%.
An indignant Mr Robinson could see nothing hypocritical in this, still less illegal: had he not forgone his ministerial salary, set up blind trusts, and been scrupulous about paying taxes?
Singapore and Hong Kong are respectively ranked 17th and 20th in terms of gross salary but move up to 10th and 9th position once their comparatively low taxes are deducted.
Payroll taxes for pensions are already greater in Brazil, at 32% of gross salary, than in all G7 countries except Italy.
Legislators have raised taxes on the rich and cut the 13th month paycheck, an annual extra-month salary bonus given to public employees as the government attempts to raise revenues and cut spending to stay solvent.
Plus, unlike wage and salary income, it is also exempt from Social Security and (for a little while longer) Medicare payroll taxes.
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