Best Answer: Oregon has no Sales Tax. Thus, all State Tax income comes from a progressive State Income Tax. It's highly dependent upon your zip code as to how much State Income Tax you will owe. I've taken a fairly general rate for you. using $127 gross, and projecting that amount for 52 weeks a year, and your State Tax liability would be $403 (assuming you're single). For a single paycheck, that represents 6.1 percent.
Claiming 0 takes uses the maximum Federal Rate. Still, the Federal Tax rate would be based on your projected income. I think you'd still fall in the 10% rate, but for argument, let's say you fall into 15 percent.
Then there is Social Security and Medicare. This will cost you 7.65 percent. Note that your employer will also need to pay another 7.65 percent on your behalf (unless you are an independent contractor, in which case they shouldn't be doing the withholding at all and you would be responsible for 15.3 percent).
6.1 + 15 + 7.76 = 28.86 percent.
That's no where near the 40 percent your boss took out. And, it's as much as 5 percent too high (you should
qualify for the 10 percent tax rate). I cannot say if other fees exist such as uniforms, parking, or partial employee funded healthcare, or if you're funding a 401(k), or you're buying Employee Stock Purchase Plan shares, or you're buying life insurance, or you're buying pre-paid legal council, or you're buying pet insurance, or you're buying Accidental Death Insurance, or you're not single and buying spouse life, spouse health, spouse AD&D insurance, or child Life, Child AD&D insurance. There are lots of possibilities. You should wait to see the detail statement.
Note: The withholding would reduce the 10%. For example, with 0 withholding, as a single person, making over $43 but not over $218 for the week, the amount of FEDERAL income tax withheld is $0.00 + 10% of excess over $43. Thus, the first $43 is free. In your situation, this means. $127 - 43. (in other words, $84) is taxable. 10 percent of $84 is $8.40. Your federal withholding is $8.40. If you had one withholding, paid weekly, you would subtract $76 from your income ($127 - 76) = $51. Then, the first $43 is still free, so you owe 10% federal tax on $8.00. That makes your Federal Tax 80 cents.