Taxable wages
Okay, let's imagine that you have a piggy bank that you put money in every week. Think of this piggy bank as your worker piggy bank. Every time you do some work, your boss puts some money into your piggy bank. This is your wage or salary.
Now, the government also has a piggy bank, like your piggy bank. But unlike your piggy bank, the government takes some money out of your piggy bank every time your boss puts some money in. This is called taxes.
So, taxable wages are the amount of money that the government takes taxes out of. But not all the money you make is taxable. Some of it is what we call non-taxable, which means the government doesn't take any taxes out of that part.
To figure out how much of your money is taxable, the government has a fancy chart that shows how much tax they'll take out based on how much you make. This chart is called a tax bracket. The more you make, the higher your tax bracket is.
So, let's say you make $20 a week. If the government's tax rate for your tax bracket is 10%, then they'll take $2 out of your piggy bank every week. This means that your taxable wages are $20.
In summary, taxable wages are the amount of money that the government takes taxes out of. It's like a piggy bank that the government takes a little bit from every time you get paid.
Now, the government also has a piggy bank, like your piggy bank. But unlike your piggy bank, the government takes some money out of your piggy bank every time your boss puts some money in. This is called taxes.
So, taxable wages are the amount of money that the government takes taxes out of. But not all the money you make is taxable. Some of it is what we call non-taxable, which means the government doesn't take any taxes out of that part.
To figure out how much of your money is taxable, the government has a fancy chart that shows how much tax they'll take out based on how much you make. This chart is called a tax bracket. The more you make, the higher your tax bracket is.
So, let's say you make $20 a week. If the government's tax rate for your tax bracket is 10%, then they'll take $2 out of your piggy bank every week. This means that your taxable wages are $20.
In summary, taxable wages are the amount of money that the government takes taxes out of. It's like a piggy bank that the government takes a little bit from every time you get paid.