Minnesota

Employer Costs, Take-Home Pay, and Tax Wedge for an
Average Manufacturing Wage Worker in MINNESOTA


	Annual
	Amount	Rank


Total Cost to Employer*	$30,797	27

Take-Home Pay	$22,253	34
Take-Home Pay, % of Employer Costs	72.3%	27

Tax Wedge*	$8,544	21
Tax Wedge, % of Employer Costs	27.7%	18

Gross Earnings	$27,200

Taxes Withheld from Worker's Paycheck
Social Security/Medicare Payroll Tax	$2,081
Federal Income Tax	$2,048
State Income Tax	$819	18
	-----------
Total Taxes Withheld	$4,947

Hidden Taxes Paid by Employer on Worker's Behalf
Social Security/Medicare Payroll Tax	$2,081
Workers' Compensation Contribution	$1,248	26
State Unemployment Insurance Tax	$212	20
Federal Unemployment Insurance Tax	$56
	-----------
Total Employer-Paid Taxes	$3,597

Employer-Paid (hidden) Share of the Tax Wedge	42.1%	30


Source: Dean Stansel, "The Hidden Burden of Taxation: How the Government Reduces
Take-Home Pay," Cato Institute Policy Analysis No. 302, April 15, 1998.
*Total cost to employer does not include the cost of fringe benefits (such as employer contributions to private health insurance plans and pensions) and tax and regulatory compliance. The tax wedge does not include the host of other taxes--property taxes, sales taxes, gas taxes, cigarette taxes, etc.--that workers must pay with their remaining take-home pay.