Tax Calculator – Tax Benefits
Did you know seasonal hiring could save you money? You can actually save money on your payroll tax by hiring J1 students and letting them do seasonal jobs for your business! For your convenience, we have implemented this Tax Calculator. You don’t have to go hit or miss or spend money on legal advice. With Jobofer.org’s Tax Calculator, accurate numbers are at your fingertips. Just fill in the fields which have self-explanatory names, and your tax savings will be calculated. You can be as flexible as you like with the number of workers, their working hours, and duration of their seasonal J1 employment.
Tax calculator
| Number of workers | Hours per week | Pay per hour | Number of weeks | Total wages | Pay roll tax savings | |
|---|---|---|---|---|---|---|
| Regular worker | ||||||
| J1 workers |
Don’t quite understand how it works? This table will help you understand what taxes J1 workers do not pay compared to your regular employees. This is where the tax savings come from. A detailed explanation follows below.
| Payroll Taxes Paid by Employer | FICA | FUTA Federal unemployment tax |
SUTA State unemployment tax |
|
|---|---|---|---|---|
| Social Security | Medicare | |||
| US workers | 6,2% | 1,45% | 0,8% | Varies by State and Employer |
| J1 workers | Exempt | Exempt | Exempt | |
We at Jobofer.org are all about providing the fullest possible information to our customers. Here’s an explanation of how US-based businesses can legally save 7.65% off their payroll expenses. When you hire J1 students, they are required to pay a number of taxes – Federal, State, and local. What they don’t pay are Social Security, Federal Unemployment and Medicate taxes. It is a common practice to match some of the taxes so that a certain percentage of a worker’s wage goes to cover these taxes. These are usually 6.2% for Social Security, up to 6.2% for Federal Unemployment, and 1.45% for Medicare. For foreign seasonal workers, these three figures are zeroes. Thus, you save 7.65% of the total payroll expense, or 8.45% of total employee salaries.
Sometimes you can save even more than that. Employees are allowed to take a credit of up to 5.4% for their State Unemployment tax which is less than Federal Unemployment tax rate of 6.2%. In case your State rate is below 5.4%, your maximum credit for Federal Unemployment will become less. The result? Your savings from hiring seasonal J1 workers grow. You can easily find out more by checking with the IRS Employers Tax Guide Publication 5.15 or contacting taxation and revenue department in your state.
Register now at Jobofer.org to start employing seasonal workers and cut your payroll tax payments!
