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//// Financial · Student Tool

What Will My First Paycheck Actually Be?

Enter your hourly wage and hours. See exactly what your paycheck looks like after taxes — with plain-English explanations for every deduction and a W-2 vs 1099 comparison.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Your Job

Hourly wage$15.00/hr
$7.25/hr$30.00/hr

Federal minimum wage is $7.25. Many states are higher.

Hours per week20 hrs/wk
4 hrs/wk40 hrs/wk

Over 40 hours/week qualifies for overtime (1.5x pay) in most cases.

How often do you get paid?
State

Gross pay

every 2 weeks

$600.00

What you actually get

after all deductions

$550.25

Social Security (6.2%)$37.20
6.2%

Both you and your employer pay 6.2% — 12.4% total

Medicare (1.45%)$8.70
1.5%
Federal income tax$3.85
0.6%

Based on 2024 standard withholding for a single filer

Total deductions$49.75

8.3% of your gross pay

Why is it lower than expected?

FICA taxes are the biggest surprise

Social Security (6.2%) + Medicare (1.45%) = 7.65% of every dollar you earn, no matter how little you make. These are called FICA taxes. Your employer matches these dollar-for-dollar on their end.

Federal income tax is lower at your income

Good news: the first $14,600 of your annual income is shielded from federal income tax (the 2024 standard deduction). Most part-time student jobs earn under or around this amount, meaning you may owe very little in federal income tax.

This is normal, and it gets better

Every working American pays these taxes. The FICA taxes fund Social Security (retirement income) and Medicare (health insurance) programs you'll benefit from later. Understanding this now puts you ahead of most adults.

What if you were a contractor (1099)?

Freelancers and gig workers get a 1099 form instead of a W-2. They're responsible for paying ALL of their own taxes, including both sides of Social Security and Medicare. No employer to split it with.

W-2 Employee (you)

$550.25

take-home per paycheck

FICA: $45.90 (you pay half)

91.7% take-home rate

1099 Contractor

$515.22

estimated take-home

SE tax: $84.78 (both halves)

85.9% take-home rate

Bottom line: 1099 contractors earn more per hour but pay significantly more in taxes. They also have no employer benefits (health insurance, 401k matching, paid time off). The higher rate compensates for this — or it's supposed to.