| http-equiv="Content-Type" content="text/html; | | | | the net salary is achieved by subtracting all taxes from |
| charset=utf-8"> | | | | the gross salary, in our case therefore the following will |
| Dental Hygienist: | | | | be our calculations: |
| A dental hygienist is one of the professions that is | | | | Net salary = gross salary — (Medicare tax + |
| highly paid in the united states with a gross salary of | | | | social security tax + federal taxes + state tax) |
| 62,430 per year, this salary is the mean wage rate for | | | | This can therefore be simplified in the table below:tax |
| the profession provided by the united state bureau of | | | | typeamountfederal |
| statistics, every other employee is required to pay | | | | 12,031.25state |
| taxes and gross salary minus the taxes give you net | | | | 2225.63 |
| salary, the taxes we consider in this profession include | | | | Medicare |
| social security and Medicare taxes, state taxes and | | | | 905.235social security |
| federal taxes. | | | | 3870.66total tax |
| In our calculation of the net salary we will consider the | | | | 19,032.78 |
| federal taxes, state taxes and Medicare and social | | | | We can therefore clearly state that the total tax is |
| security taxes, we assume that the employee works | | | | 1103.71 which includes all the taxes considered in the |
| in Arizona State and therefore his state tax will be | | | | table above, our net salary will therefore be as |
| with reference to the Arizona tax rate. For this reason | | | | follows:gross salary |
| this paper will first consider the calculation of individuals | | | | 62,430minustax |
| taxes using the gross salary and therefore we must | | | | 19,032.78net salary |
| consider the gross salary first and then search for | | | | 43,397.225 |
| appropriate sources of the tax rates that are required | | | | Our net salary in the dental hygiene profession for an |
| in the calculation of the net salary. | | | | average employee is 4098 dollars; this has been |
| Gross salary: | | | | obtained by calculating total taxes and then subtracting |
| The mean gross salary of a dental hygienist is 62,430 | | | | from the gross salary. |
| per year, this according to the united state bureau of | | | | The yearly net earnings per month will therefore be |
| statistics available at because taxes are paid every | | | | 43,397.225 ÷ 12 = 3616.435417and the total tax paid |
| month we will have to determine the mean salary per | | | | per month will be 19,032.78 ÷ 12 = 1586.064583 |
| month and this will be obtained by dividing the annual | | | | Assumptions of this calculation are that the dental |
| mean salary by the number of months per year which | | | | hygienist salary is 62,430 per annum and therefore to |
| is 12, | | | | get the salary per month is given by dividing this |
| Monthly gross salary = annual gross salary / 12 month | | | | amount by 12 months. The other assumption made |
| = 62,430/12 | | | | during calculation is that the person in question who is a |
| = 5202.5 | | | | dental hygienist is a single person and not married, the |
| Medicare and social security taxes: | | | | other assumption made is that the taxes rates given |
| Given the monthly gross salary we are in a position to | | | | are monthly tax rates and finally the assumptions is |
| calculate the Medicare and social security taxes, this | | | | that only federal taxes, state taxes and Medicare and |
| tax level is obtained by multiplying the gross profit by | | | | social security taxes are relevant in the calculation of |
| the tax rate which gives us the tax level. | | | | net salary, this assumption also states that there are |
| Tax = gross salary X tax rate | | | | no tax refunds or compensations such as transport |
| The social security tax is 6.2% and the Medicare | | | | allowances and house allowances provided to the |
| taxes is 1.45% this is according to we therefore | | | | dentists. |
| consider each tax separately and this will be as | | | | Taxes: |
| follows: | | | | Taxes can either be direct or indirect taxes, direct |
| | | | taxes include income taxes and wealth taxes while |
| Social security tax: | | | | indirect taxes include sales taxes and value added |
| 62,430 X 6.20% = 3870.66 | | | | taxes. There are various forms of taxes, taxes can |
| Medicare taxes: | | | | either be progressive, regressive or proportional taxes, |
| 62,430 X 1.45% = 905.235 | | | | a regressive tax is that tax which will place a heavy |
| State tax: | | | | tax burden on low income earners than higher income |
| State tax is also deducted from the gross salary in | | | | earners. A progressive tax is that tax which places a |
| order to get the net salary that a dental hygienist | | | | larger tax burden on higher income earners than lower |
| should receive, the state tax for the Arizona state lies | | | | income earners. Finally a proportional tax is the tax |
| between 2.59% and 4.54%, for this reason therefore | | | | which places an equal tax burden on all income groups. |
| we get the mean rate of the Arizona rates, these | | | | The state tax is a proportional tax meaning that the |
| rates were retrieved from the mean rate will be | | | | low income earners and the high income earners pay |
| achieved by adding up the two rates and then dividing | | | | the same tax rate to the tax rate, in this form of tax |
| the sum by two, this will be as follows: | | | | the poor citizens are forced to sacrifice more than the |
| 2.59% + 4.54% = 7.13% | | | | wealthy citizens. The federal taxes are progressive |
| 7.13% /2 = 3.565% | | | | taxes where the tax rate increases as the level of |
| For this reason therefore we will consider the state | | | | income increases, they help in establishing equality in |
| tax as 3.565% which the mean rate of tax in Arizona. | | | | the society through less tax burden to low income |
| Given the rate of tax as 3.565% we can find the tax | | | | earners. However we do not have any regressive tax |
| level of a dental hygienist in Arizona and this will be | | | | represented in our case.tax |
| given by multiplying the gross salary by the tax rate, | | | | typeamountpercentagefederal |
| therefore our tax level will be achieved as follows: | | | | 12,031.25 |
| 62,430X 3.565% = 2225.63 | | | | 19%state |
| Therefore our state tax per year is 2225.63 | | | | 2,225.63 |
| Federal tax: | | | | 4% |
| The federal taxes are determined using a tax table, | | | | Medicare |
| our tax table was retrieved from and the table below | | | | 905.24 |
| shows the tax level at each salary range in the | | | | 1%social security |
| country: | | | | 3,870.66 |
| If income is over | | | | 6%net salary |
| But not over | | | | 43,397.23 |
| The tax rate is | | | | 70%gross salary |
| 0 | | | | 62,430.00 |
| 7825 | | | | 100% |
| 10% of the amount over $0 | | | | According to the percentage analysis of the gross |
| 7825 | | | | profit the highest component of tax is federal taxes |
| 31850 | | | | 19%, the second largest is the social security taxes 6% |
| 782.50 plus 15% of the amount over 7,825 | | | | and the lowest is the Medicare tax which is only 1%. |
| 31850 | | | | From the table above the net salary is 70% of gross |
| 77100 | | | | earnings and therefore the tax levels amount to 30% |
| 4,386.25 plus 25% of the amount over 31,850 | | | | of gross earning, in future we expect the tax levels to |
| 77100 | | | | decline, the reason for this is an increase in the number |
| 160850 | | | | of tax payers in future which will result into a large |
| 15,698.75 plus 28% of the amount over 77,100 | | | | number of taxable individuals in the future increasing |
| 160850 | | | | tax revenue. Taxes in the future are also expected to |
| 349700 | | | | promote equality in the economy and therefore we |
| 39,148.75 plus 33% of the amount over 160,850 | | | | expect all taxes to be progressive in nature. |
| 349700to infinity | | | | Tax payment methods: |
| 101,469.25 plus 35% of the amount over 349,700 | | | | Tax payers can pay tax using many different |
| This therefore means that our salary lies between | | | | methods. Some of these methods include instalment |
| 31850 and 77100 dollars and for this reason we | | | | agreement, cash or cheque or through web pay. |
| assume that the employee is single and not married | | | | Cash or cheque: |
| because the table above depicts tax rate for single | | | | This is one method in which an individual can opt to |
| persons in the country, given that the tax rate is | | | | pay his or her taxes every month this is one of the |
| 4,386.25 plus 25% of the amount over 31,850 then we | | | | easiest method of paying tax. |
| can find the federal tax is calculated as follows: | | | | Instalment agreement: |
| 4,386.25 plus: | | | | An employee can also pay through an instalment |
| 62,430 - 31,850 = 30,580 | | | | agreement. This allows the employee to pay taxes |
| 30,580 X 25% = 7645 | | | | every month through his or her bank accounts where |
| Therefore our federal tax level is equal to | | | | tax amounts are deducted every month. |
| 4,386.25 + 7645 = 12,031.25 | | | | Fund transfers: |
| Net salary: | | | | The tax payer can also pay taxes using credit cards |
| Having determined the tax that is included in calculating | | | | where the individual can transfer funds from bank |
| the net salary we can now determine the net salary, | | | | accounts for tax payment. |