I usually opt to work more during the holiday season because we get higher wages (holiday pay). I signed up for a lot of extra days and my co-workers keep telling me that because I’ll make more money, I’ll get taxed more. So I’ll be receiving less pay than I’d usually make without the overtime. Is that right? I feel stupid right now.
In: Mathematics
I think the point your co-workers trying to make is this. If you make $30 an hour, say, and your overtime is double that, if you work a few extra hours, you see that money. You actually notice roughly $120 extra, sorta, if you work 2 overtime hours. But if you work 20 overtime hours you certainly won’t ‘see’ $1200 on your pay because that money he’s a fat chunk taken off because if you work 20 hours extra fairly regularly you gonna bump up a bracket and if that money was not withheld off your pay you’ll be paying out of pocket at tax time. Employer deductions work like that so your coworkers saw the gleam in your eye and your calculations you were making in your head and since they’ve all been there they just trying to warn you.
Saying ‘you don’t actually lose’ like most these people are saying doesn’t quite get the point. Work a little overtime and you’ll feel it in the wallet, work a lot of overtime and you’ll feel robbed.
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