- If you make < $20,000 Your tax would be 5%
- If you make > $20,001 and < less than $60,000 Your tax would be 7%
- If you make > %60,000 you then would be taxed at 9%
Take, for example, two employees. One comes in an extra hour on Saturday to do some work. They get paid 10$ per hour, so one makes $59,995 and the other makes $60,005 in that year. They are only 10$ apart from each other, but, in a different Tax Brackets.
First employee will take home 59,995 – (59,995 x .07) = $55,795
Second employee will take home 60,005 – (60,005 x .09) = $54,604