I intend to ask for a fairly substantial raise near the end of the year, but before I do so, I want to ensure that I've considered all the legally required costs to my employer before making my request.
From my research, the legally required costs beyond the salary on the employer end are as follows:
- Social Security Tax: 6.2% of income up to an annual salary of $113,700; my current and requested salary are less than this, so the full amount is applicable;
- Medicare Tax: 1.45% without a salary limit;
- State Unemployment Insurance: The highest rate I found for this was 15%, but the highest threshold for pay was $39,800 and my current and proposed pay are greater than this amount, so I don't think this is applicable for this situation;
- Health Care Insurance: There would not be a change in my insurance costs. I would cost the same before the raise as I did after;
In total, I think only the Social Security and Medicare taxes are applicable totaling 7.65%.
Is this correct or am I missing other legally required cost elements that go into a raise?