professional tax payable on net salary or gross salary
Professional Tax The professional tax is a slab-amount based on the gross income of the professional and salaried and as well as the other states as may be decided employee's. It is deducted from salary of the employee every month. In case of a company, directors of a company, partnership's, individual partners, self-employed professional or owner's of any business undertaken in the state, it is to be submitted depending upon their gross turnover in the preceding year. In some cases, the payment of tax is fixed and is to be paid irrespective of turnover. For example in state of West Bengal, owner of a factory has to pay professional tax only if the preceding year turnover is greater than 5 lac rupees and in case of companies there is a mandatory payment of rupees 2,500 /- each year as professional tax irrespective of turnover.[3] For west bengal professional tax slabs and rates on employee or otherwise click here.
Social Security Wage Base In 2018, the Social Security Wage Base was $128,400 and the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer.[1] A person with $10,000 of gross income had $620.00 withheld as Social Security tax from his check and the employer sent an additional $620.00. A person with $130,000 of gross income in 2017 incurred Social Security tax of $7,886.40 (resulting in an effective rate of approximately 6.07% - the rate was lower because the income was more than the 2017 "wage base", see below), with $7,886.40 paid by the employer. A person who earned a million dollars in wages paid the same $7,886.40 in Social Security tax (resulting in an effective rate of approximately 0.79%), with equivalent employer matching. In the cases of the $130k and $1m earners, each paid the same amount into the social security system, and both will take the same out of the social security system.