Employers in Colorado are now required to include compensation on their job posts, but that is before taxes and doesn’t include any benefits. How much will you actually see on your check if you get a job that pays $70,000 per year?
$70,000 a Year Is How Much an Hour?
A annual salary of $70,000, working 40 hours per week (assuming it’s a full-time job of 8 hours per day), will get you $34.31 per hour.
Below, we broke down what $70,000 yearly looks like in gross and net pay.
If you’re just looking to compare your current pay to a new potential job, then this is the section for you. The chart below breaks down an annual salary of $70,000 into what your gross pay would be on your check for common pay periods.
|Pay Period||Gross Pay||Math|
|Hourly||$34.31||$70,000 / 2040 hours|
|Daily||$191.78||$70,000 / 365 days|
|Weekly||$1346.15||$70,000 / 52 weeks|
|Biweekly||$2692.31||$70,000 / (52 weeks / 2)|
|1st and 15th||$2916.67||$70,000 / (12 months x 2)|
|Monthly||$5833.33||$70,000 / 12 months|
Your gross pay may show up on your pay stub, but your net pay is what ends up in your bank account. Net pay is how much you’ll get after taxes, retirement contributions and other deductions are taken out of your pay, and any reimbursements are added in.
The federal income tax for individuals has seven rates, applying to different income brackets. The overall rates range from 10% to 37% in tax year 2021. With a progressive tax code, the amount of taxes you pay depends on the income bracket where your wages fall. When earning $70,000 per year as a single filer, for example, you pay 10% on the first $9,949, 12% on the next $40,524 and 22% on the rest, which is $19,527.
Because the U.S. uses marginal rates, figuring out how much is taken out in each check is more complicated than finding your income on the rate chart. Different portions of income are taxed at different rates. The average of these rates is your effective tax rate.
The government also takes out Social Security, Medicare and FICA, which is not included in the above chart. States can also collect income tax. State tax rates vary, but nine states don’t collect any income taxes. These are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Other Factors Affecting Net Pay
Deductions From Pay
Taxes aren’t the only other factor to think of when looking at net pay. Most employers offer health insurance, but the quality and premiums can vary. Some offer FSAs or HSAs, which can reduce the net pay on your check, but save you money overall.
Additions to Pay
Employers can offer retirement matching or tuition reimbursement. These won’t show up in your check, but they will show up on your pay stub. They should still be considered when thinking about pay if you’ll use them.
Converting $70,000 per year into an hourly gross rate is simple, but converting it to an hourly net rate can get more complicated.