Yes, one day you will leap for joy, clutching a coveted paycheck stub in your hand if you have not already. You will look at it and grin, and then frown, and then ask yourself why the number on the check is lower than what you actually earned.

Someone has to pay for all those programs that the federal government runs for the benefit of its citizens and the highways that get you from here to Florida much faster than you could back in the days of two lane highways. And that someone is you and everyone else that works!

Payroll Taxes
Some payroll taxes you have no control over. Everyone pays them regardless of how much they make. But some taxes are based on what your life situation is, for example, are you married? Do you have a child or children? Are you the head of your household? The way that you answer these questions has an impact on how much tax the government will take out of every paycheck you earn. Don't worry though. As you'll learn in the topic on filing federal taxes, you may get a refund if you overpay. The most important thing is that you fill out your payroll tax forms correctly so that you don't owe the government a huge check at the end of the year! Watch this presentation and learn how to avoid that situation.

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Payroll Funding

Two large programs that you fund with your tax dollars, Social Security and Medicare, take 7.65% of your income. What do you get for that money? These programs are designed to help the old, disabled and sick, those who have already worked a long time, and aren't able to work and support themselves any more. How are you going to pay for retirement? Social Security may be part of that answer. Learn more about how these programs are funded, and why they might not be around for the long term.

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While the federal government gets the largest percentage of its revenue from individual income taxes, some other sources include: