When it comes to wages, it’s always good to know exactly what you’re getting into. So, if you’re wondering if $17 an hour is a good wage, here’s what you need to know about this wage amount and if it will work for you. However, it’s important to note that $17 an hour is different if you’re a W-2 employee vs. a freelancer. As a freelancer, you are entitled to keep all of your earnings after taxes. On the other hand, if you were a W-2 worker for a business, your employer would take care of your taxes.let us know about that the Is 17 An Hour Good Money In 2020?
A wage of $17 per hour added up to an annual salary of $37,000 may appear to be a lot, but after taxes, it may not be. Having a solid budget is key to being able to live off this salary, especially if you have a family. However, $17 an hour can be a good amount of money to live off comfortably for a single person. With that said, it’s important to remember that not everyone is in the same position. It’s important to remember that everyone has different circumstances and that there is no one-size-fits-all answer when it comes to money.
Is $17 an hour a good pay in 2020?
To put things into perspective, the federal minimum wage is $7 per hour, making $17 per hour is quite a competitive wage. The average hourly wage for all employees in 2020, as reported by the Bureau of Labor Statistics, was $20.79. Since the recession in 2008, that figure has remained largely stable. Indeed, $17 an hour will likely be sufficient to support you if you’re just starting and don’t have any experience or education beyond a high school diploma.
$17 an hour is how much money per day?
There are 8 hours in an average workday. $136 will be your daily income if you make $17 an hour. Some workers, however, are required to work 12-or even longer shifts. They would receive a gross daily wage of ($17 x 12) = $204 for those workers.
$17 an hour is how much money per week?
The average employee works 40 hours a week. The median income for full-time workers in the United States was $990 per week in the second quarter of 2020, according to the Bureau of Labor and Statistics. So, if you make $17 per hour, that equals out to $680 per week, and that’s quite a decent salary. ( 17 x 40 )
$17 an hour is how much money per month?
There are 40 work hours in a week and generally 4 weeks in a month. Your gross monthly salary before taxes will be $2,720 if you earn $17 per hour. You can arrive at this figure by multiplying the number of hours worked in a month (160) by the hourly wage ($17).
$17 an hour is how much money per year?
A 40-hour work week at $17 an hour, multiplied by 52 weeks in a year, will yield you $35,360. It is also referred to as “gross pay” because it is the amount earned before taxes and other deductions. The following serves as an example of all taxes being eliminated:
- Social Security Tax
($35,360 × 6) / 100 = $2,121
- Medicare Tax
($35,360 × 1.45) /100 = $512
- Income Taxes
($35,360 × 20) /100 = $7.072
Total annual taxes to be paid: $2,121 + $512 + $7,072 = $7,705
Gross Income ($35,360)-Total Income Taxes ($7,705) = $27,655 is your annual income.
How to plan a monthly budget of $17 per hour?
Making a realistic budget and doing accurate math is the best approach to figure out if you can make ends meet on $17 per hour. Let’s take a look at a monthly budget illustration for a person making $17 per hour.
When it comes to housing, one of the biggest expenses, the rule of thumb is that you shouldn’t spend more than 30% of your gross monthly income on it. In a scenario of $17 an hour, that would be $816. Then, include essential expenses like food, transportation, and utilities. Once you’ve accounted for all of your necessary expenses, you’ll have a better idea of how much money you have left over each month and whether or not $17 an hour is enough to cover your costs. Here’s a budget you can follow:
Total Monthly Income: $2,720
- 30% – Housing
- 10% – Utilities
- 10% – Insurance
- 10% – Food
- 10% – Transportation
30% of the remaining funds might be set aside for future improvements or utilized for other needs, like entertainment.
Conclusion
After taxes, you will make $27,655 a year at 17 dollars an hour, which isn’t too awful. If you live alone, the base compensation of $17 per hour is sufficient to cover living expenses in some places and is a reasonable starting point for an entry-level career. It is over the minimum wage and sufficient to live in some places.
