Your paycheck is not your full salary. Understanding gross vs. net pay, federal/state income tax, and FICA deductions is the foundation of personal finance.
Gross pay is your total earnings before deductions. Net pay (take-home pay) is what remains after all taxes and deductions.
The US uses a progressive tax system: higher income is taxed at higher rates, but only the income in each bracket is taxed at that rate. For example, the first $11,000 is taxed at 10%, the next $33,000 at 12%, etc.
FICA = Social Security (6.2% up to $160,200) + Medicare (1.45%). Your employer matches these. Together about 7.65% of your paycheck.
You fill out a W-4 when you start a job to tell your employer how much to withhold. At year end you receive a W-2 showing total earnings and withheld taxes — used to file your return.
Q1: The US income tax system is "progressive," meaning:
Q2: FICA taxes fund:
Q3: Your W-2 form shows: