I’m a CPA (finance side) but can’t figure out this math so all help is appreciated. My old job until 10/14 this year was paying me a paycheck of $2388. My new job (started 10/14) is paying me a biweekly paycheck of $2544 (should be a full pay period). My old salary was 82k gross and new salary is 95k gross. By my quick math, a 13k gross increase should equate to around $8.5k in net increase, which divided by 26 pay periods is a $325 increase per paycheck.
So why is my paycheck increase only around $150? I understand that I should expect a tax refund since they are withholding at the higher rate, but I still don’t understand how to reconcile the difference between my old paycheck and new. This is Atlanta btw. Thanks!
New paycheck not equating to salary increase – help!
byu/DiscombobulatedWin23 intax
Posted by DiscombobulatedWin23
6 Comments
What deductions are there?
Are you factoring in variables like taxes and other percentage based deductions?
Was your old job twice per month, such as on the 1st and 15th (or 15th and 30th, etc.)?
Biweekly pay is a bit more frequent, so each check is slightly smaller. In particular, there will be 2 months per year (sometimes 3) where you receive 3 checks in a single calendar month.
How do the deductions for health insurance and other paycheck deductions (like 401k, HSA, etc) compare?
Have you looked at both paychecks side by side?
You are a cpa and you can’t calculate this?????????????