Posted by AuntieMel on August 10, 2006, at 8:51:25
In reply to Re: cost of drugs, posted by kylenn on August 8, 2006, at 20:56:08
"My employees all worked about 10 hours of overtime a few weeks ago. I was excited for them and they were excited. Guess how much
more their average paycheck was? Less than $30 more than if they had worked NO OVERTIME. They were essentially paid LESS
THAN MINIMUM WAGE for their overtime hours. WHY? BECAUSE THE STUPID INCOME TAXES TOOK SO MUCH MORE OF
A PERCENTAGE SINCE FOR THAT TWO WEEKS THEIR INCOME GOT BUMPED UP A BIT.
noW, who thinks that is fair???????
I know they did NOT."In addition to my day job, I keep the books and do the payroll/payroll taxes for my hubby's business.
The payroll is done using IRS generated tables, for the income level the person is in. In the one-off case of a lot of overtime, or a big bonus, the amount of taxes really does look large.
But that isn't really the true tax bracket. This gets evened out at the end of the year when the total taxes are figured for the hear. If too much was taken out in that one-off case, they will get it back then.
If the employer knows that it really is a one-off, they can request a new W4 with more dependents listed for that pay period, and then get a new W4 to go back to normal.
poster:AuntieMel
thread:674781
URL: http://www.dr-bob.org/babble/poli/20060809/msgs/675367.html