Gs Pay Table 2023 3 – Every year, Americans file their income tax returns in hopes of claiming all the legal tax deductions. One way to potentially reduce your tax burden is to file your taxes separately from your spouse rather than as a joint household. In some cases, a tax ID number works best when filing taxes separately. But how does this affect your health insurance premiums? Well, this could be a huge mistake! If you are 65, 2 or younger or already eligible for Medicare, listen up!
Medicare premiums are based on your adjusted gross income 2 tax years ago. Therefore, in 2023, Medicare will automatically look at your 2021 federal income tax return to determine your Medicare premiums. Refer to the table below:
Gs Pay Table 2023 3
As you can see, Medicare looks at 3 different tax returns (individual, joint, married, and separated). If your individual modified adjusted gross income (or MAGI) is $9,000 or less…or your combined MAGI is $194,000 or less, you’ll pay a standard Part B premium of $164.90/month in 2023.
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But what if your accountant or tax software advises you to file your taxes separately to save on income taxes? Should you do this? It depends on the situation…
If you and your spouse file separately, this is OK as long as each of your individual incomes does not exceed $97,000. You will both pay a standard premium of $164.90/month Part B. all the best.
If one of you has a premium of less than $97,000…but the other has a premium of more than $97,000…then one of you will pay a standard Part B premium and the other will pay more.
But if you spend just one dollar over $97,000…you’ll pay a much higher Medicare premium! You will move into the fifth or sixth income bracket. For example, the fifth income bracket ($97,001-$402,999) can earn $527.50 per month in Part B premiums, in addition to $70.00 per month in high-income Part D IRMAA premiums! That’s a huge difference…well over $164.90 per month.
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How much money can I save by filing my taxes separately? Probably not as much as the increase in Medicare premiums.
Therefore, think twice before filing a separate tax return with your spouse when either spouse is within 2 years of turning 65 or is already eligible for Medicare.
NOTE: This article should not be considered tax advice, but merely a reminder of how Medicare determines premiums based on income and income tax filing status. Please consult a tax professional for guidance specific to your situation.
Medicare Supplemental Plans (Medigap), Prescription Drug Plans (Part D), and Medicare Advantage Plans (Part C) are offered through the Med Plan Store.
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If you contact The Med Plan Store, you will be directed to a licensed insurance sales representative to discuss your Medicare Supplement Plan (Medigap), Prescription Drug Plan (Part D), or Medicare Advantage Plan (Part C).
We don’t offer all plans available in your area. Any information we provide is limited to the plans we offer in your area. Contact Medicare.gov or 1-800-MEDICARE for information about all your options.
Please do not send us a message requesting a replacement Medicare card, Social Security card, or Form SSA-1099. Please visit our Video Series page to learn how to request these items. We are not the Social Security Administration.
By completing the form above, I understand that a licensed representative will contact me by phone, text, or email to discuss a Medicare Supplement Plan (Medigap), Prescription Drug Plan (Part D), or Medicare Advantage Plan (Part C). So your business keeps growing and hiring employees. It’s definitely an exciting time, but it also comes with a lot of questions – especially if you’re a first-time employer.
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One of the questions you need to figure out before an employee starts working is “How often should I administer payroll?”
As the business owner, it’s entirely up to you – but the most popular pay schedule is biweekly. But what does this salary plan actually mean? Is there a calendar to follow? We’ll dive into all of this and more, so keep reading!
Bi-weekly payroll means you pay your employees every other week on a specific day of the week. For example, you can send paychecks to employees every other Friday. Since there are 52 weeks in a year, a biweekly pay schedule has 26 pay periods in a calendar year.
According to the U.S. Bureau of Labor Statistics, 43% of businesses use a biweekly pay schedule, making it the most common pay schedule.
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In 2023, there are 26 biweekly payment dates. Most employers use Friday as the payday due date because holidays like Labor Day and Memorial Day fall on Mondays.
This is a free printable 2023 salary plan template that you can use with Microsoft Excel or Google Sheets. (Just click “Make a Copy” to get your own version.)
If you want to make payroll processing easier, take a look. Our payroll platform automatically calculates and pays your employees and handles your payroll taxes – reducing the time, effort and resources required to run payroll.
To calculate an employee’s total pay, divide the total pay by 26 (the total number of pay periods).
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For example, let’s say you have a full-time office worker who earns an annual salary of $44,200. Divide $44,200 by 26 and you get a total payroll of $1,700 for each period (Gross payroll is the total amount paid to the employee before payroll taxes are withheld.)
Wondering how much they make per hour? Maybe you want to check if your employees are being paid more than the minimum wage set by the city, state, or federal government?
Divide their salary by 2,080 non-overtime hours in a year. So for the example above, we divide $44,200 by 2,080 hours. $21.25 per hour.
For team members, you can calculate their pay as follows: Calculate the total number of hours worked between the pay period start date and pay period end date, then multiply by their percentage.
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So, if your employee is paid $15 an hour and works 60 hours on a schedule, their total pay will be $900. You must then withhold payroll taxes, which include FICA (Social Security and Medicare) and federal income taxes.
Assume the worker’s withholding taxes include 7.65% Social Security and Medicare (FICA tax) and 12% federal income tax. This means you have a total withholding of 19.65% of your payroll, or $176.85. Your employee’s net after-tax pay for the period was $723.15.
When choosing a salary plan, there are several factors to consider, including the amount of administrative work involved, industry standards, and employee preferences. Here are the most common ones and some things you might want to consider when choosing which one:
From a business owner’s perspective, having less frequent paydays is a good thing because it results in less work. For example, using a monthly calendar means you only have to run payroll 12 times a year.
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Monthly payroll may be a more affordable option for companies that manage payroll themselves (which takes time and resources) or that work with a payroll service provider (who charges a fee each time payroll is run). (But if you have one, you can do unlimited payroll calculations and pay employees as often as you want.)
Finally, depending on the types of workers you hire and where your operations are located, you may be required to pay your employees multiple times per month (you can view the complete state-level payday requirements on the U.S. Department of Labor website.) In California, e.g. , you must pay your employees at least twice a month.
This option is very useful for employees. This gives them motivation to continue working every week, making them more financially secure. Instead of their bank account constantly dwindling throughout the month, it’s constantly refreshed every week, which is a great convenience.
Weekly planning is also especially suitable for employees. They often have different work arrangements, and getting paid each week makes it easier to see how much money they’ve made so far. This can help them determine if they can pay their rent, bills and any other expenses, or if they need to take on more work before the end of the month.
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However, these schedules may require more administrative work to process weekly payroll, unless you have a similar service that will do this for you automatically based on your needs.
This is also the most commonly used method. That means it’s a program many employees are familiar with. So when you hire new employees, they’re more likely to have experienced this pay frequency before, making their transition seamless.
Some months are longer than others, which means paydays may happen three times instead of two. If you start a biweekly pay schedule on Friday, January 6, 2023, your three pay months will be March and September.
As an employer, you don’t need to plan much for this as it will happen automatically based on your payment schedule. However, it’s best to know from your paystub
