[fastbeef]

Not income tax, payroll tax, the tax the employer pays for having employees. Most people are not even aware of this existing. It the one marked “Employer” in this table:

https://en.wikipedia.org/wiki/Payroll_tax

[beberlei]

Its not a tax in Europe, but usually the companies share of social insurance. That is why the word payroll tax is confusing to us Europeans :-)

In Germany the company share of social insurance is another ~20% on top of the employees pre-tax salary.

It is not nearly enough to explain the wage disparity between SF/US and European salaries.

[fastbeef]

Exactly. 20% ON TOP of your salary. It’s baked in to the US salary. Sure, it doesn’t account for the whole delta but it’s not nothing.

[egman_ekki]

So e.g. in Denmark, Employer pays no tax for an employee, but still the salaries are nowhere near US.

[C1sc0cat]

Erm not sure what your talking about those us salaries don't have the employer side taxes either.