- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
OT accountant/Tax gurus: whats the deal with taxes and overtime?
Posted on 2/16/14 at 3:40 pm
Posted on 2/16/14 at 3:40 pm
I've always been told the govt "allows" you a certain amount of overtime hours, somewhere between 18-20 hours and under without really raping you on taxes, but once you go over that allotted time, you are taxed extensively.
I also thought I saw it first hand when I would work 24 hours of overtime and only have about $100 paycheck different compared to when I had 10-12 hours and it jumped up $200+ compared to my paycheck with no overtime.
Whats the deal with this? Do you get bumped in tax brackets for working too much OT? Is there any ideal amount of hours to work OT?
I also thought I saw it first hand when I would work 24 hours of overtime and only have about $100 paycheck different compared to when I had 10-12 hours and it jumped up $200+ compared to my paycheck with no overtime.
Whats the deal with this? Do you get bumped in tax brackets for working too much OT? Is there any ideal amount of hours to work OT?
4
Posted on 2/16/14 at 3:45 pm to brass2mouth
quote:
OT accountant/Tax gurus: whats the deal with taxes and overtime?
There is no deal, overtime is taxed at the same rate and any other w-2 income.
the issue is with your companies payroll software, if one check is double your normal pay then it's going to assume every check is going to be that much and withhold accordingly
Posted on 2/16/14 at 3:49 pm to yellowfin
quote:
the issue is with your companies payroll software, if one check is double your normal pay then it's going to assume every check is going to be that much and withhold accordingly
This.
Company may have taxed the check that included the 24 hours of overtime like you make that year round thereby increasing your annual income and taxes.
Over time is taxed no differently than your regular income.
Posted on 2/16/14 at 3:54 pm to yellowfin
Few nurses I know will change their tax status with HR if they do a lot of overtime so they take home more of their check.
Don't know how that works out come tax time though.
Don't know how that works out come tax time though.
Posted on 2/16/14 at 3:59 pm to yellowfin
quote:
the issue is with your companies payroll software,
Not really. They all use the same tax tables, no matter where you work.
To the OP - Taxes withheld are based strictly on the dollar amount of the paycheck. It has nothing to do with overtime. If they withheld too much, you will get it back when you file.
Posted on 2/16/14 at 4:01 pm to Evolved Simian
quote:
To the OP - Taxes withheld are based strictly on the dollar amount of the paycheck. It has nothing to do with overtime. If they withheld too much, you will get it back when you file.
This, this, this!
End of thread.
Posted on 2/16/14 at 4:04 pm to Evolved Simian
quote:
Not really. They all use the same tax tables, no matter where you work.
yes really, if he makes 1k a week all year but works overtime one week and makes 2k it's going to withhold based on him making 2k every week on that check
Posted on 2/16/14 at 4:15 pm to brass2mouth
You pay tax-and-a-half on time-and-a-half. 
This post was edited on 2/16/14 at 4:17 pm
Posted on 2/16/14 at 4:31 pm to yellowfin
quote:
yes really, if he makes 1k a week all year but works overtime one week and makes 2k it's going to withhold based on him making 2k every week on that check
I've heard this as well, saying the system "plays catch up" of sorts.
Posted on 2/16/14 at 4:37 pm to brass2mouth
Don't make too much, or it'll cost you more than it's worth!
Progressive tax rates are a myth!
Progressive tax rates are a myth!
This post was edited on 2/16/14 at 4:37 pm
Posted on 2/16/14 at 4:43 pm to brass2mouth
Basically at the end of the year your tax liability will be based on this table:
It doesn't matter if it's straight time, over time, or double time
It doesn't matter if it's straight time, over time, or double time
Posted on 2/16/14 at 4:52 pm to yellowfin
quote:
yellowfin
Thanks fin.
That table is ridiculous.
Posted on 2/16/14 at 4:54 pm to brass2mouth
quote:
That table is ridiculous.
Not really
Posted on 2/16/14 at 4:59 pm to brass2mouth
You will get it back when you file...unless you make that every week
Posted on 2/16/14 at 5:14 pm to brass2mouth
My tax return preparer calculates an overall effective tax rate for his customers. Payment of federal and state income tax, property, sales and gasoline taxes I'm knocking on the door of 50 percent. Those parasites in DC and BR can kiss my arse. 
Posted on 2/16/14 at 5:17 pm to JoePepitone
you must be rich
and live in a state with really high income tax/property tax
and live in a state with really high income tax/property tax
Posted on 2/16/14 at 5:21 pm to JoePepitone
quote:
I'm knocking on the door of 50 percent.
damnm, sonnn.....
Posted on 2/16/14 at 5:39 pm to JoePepitone
quote:
Those parasites in DC
Can't wait till they get a hold of my bonus check next month.
Posted on 2/16/14 at 5:47 pm to JoePepitone
quote:
My tax return preparer calculates an overall effective tax rate for his customers. Payment of federal and state income tax, property, sales and gasoline taxes I'm knocking on the door of 50 percent. Those parasites in DC and BR can kiss my arse.
50% is easy to see.
39% Income tax
10% Sales Tax
8% Property Tax
Reinvest, and pay capital gains tax on your income again.
?% auto registration and inspection
Own a biz and pay tax on all of your inventory and assets, every year. And occupational license tax.
Eventually it's easy to vote NO on any proposed taxation.
It's past time for the government to find the fat and cut it.
Not a political statement, just a too much tax being paid issue.
Posted on 2/16/14 at 6:08 pm to Grassy1
Gasoline excise taxes actually need to go up, as they've stayed the same exact rate through inflation.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News