I agree, you should pay taxes based on your hourly income not how many hours you work, and if you have to work 2 jobs to pay the bills you shouldn't have to owe money for that
To be honest, 15 over in my state, is basically the starting line for being pulled over unless its in city limits. this is over the span of like, 10 years or so but ive gotten 3 tickets at 17 over, 1 out of state, 2 of those got dropped completely due to court supervision, 1 of those i had to bite the bullet (out of state) because i did not know how things worked in that state, judge basically lowered my fine from like 170 to 40 bucks. Hell my state just raised how fast you gotta drive before its considered a felony, and on top of that its only a felony if you hit someone going at that speed. 35 over + hitting someone is the starting point for a felony speeding in my state now. Used to be 25 over. The weed and tax evasion though is spot on.
I remember getting asked about if I would pay our union dues and I asked was there any benefits for this and they said it was like a insurance policy throw away the cash and hope you never have to use it
My union had a joining fee that was spread out over 6 months which kinda sucked. But, without unions we would not be talking about 40-hour work weeks and overtime.
@@theteddy1487box few houses and big kev is a master SON knows everything calculations and how to size wire on every raceway and conduit pretty much big kev is THE MAN now 😂😂
True stories follow: I was jailed for 18 months for having a bag that used to have marijuana in it. There's literally rapists who get less time than 18 months. Then, much later in life, a person committed a violent person felony against me, I called the cops and a fucking shit you not, the actual response from the 911 op was "There's no way we are coming out on a call like that"... She THEN told me that I should stop acting like a "suspicious character" before someone calls the cops on me. I laughed at her, because obviously if you're not answering violent crime calls, you're not answering a suspicious person call PLUS even if you did, I just pull this phone call for court. It's sad that usually, they don't care about real crimes. But you know what calls they'll answer every time? A trespassing call for a business
Maybe you should throw your old bags away instead of being a fucking degenerate who doesn’t give a fuck. Ever think about that? And, maybe, just maybe, you could handle your own shit instead of expecting someone else to clean your car for you and handle your violence for you???? That’s just too much though, right? Jesus Christ.
When I worked the night shift in a warehouse after high school. People convinced me that if you went a dollar into the next tax bracket, you paid that level of tax on all the money you made that year. People would actually avoid OT because they thought it would cause them to lose money. That's not how taxes work.
It pains me how true this is. My work will pay overtime (I'm salaried) if I go above 46 hours until 60 hours. So that means I work 6 hours for free technically before I can get overtime. Then when I do get to 60 hours, those 14 hours are averaged down by 6 hours I worked...AND THEN they're fucking taxed as overtime. Did the math and it cuts my "hourly rate" down by 3/4.
Buddy, I'd strongly encourage you to check with a labor lawyer. Employers do this shit all the time to misclassify employees when they're under the $107K floor on highly compensated employees and not an exempt profession. If they're offering OT on top of salary you're almost certainly getting screwed. That labor lawyer will go through your timesheets with a fine tooth comb and get you a hell of a lot of money back.
@@Veliladon I think I'm adequately compensated with my salary (107k++ and stock). I am a software engineer, so I can't complain about my salary. My manager doesn't forced us to do overtime but that 6 hour gap dissuades me from even considering working harder. I have looked into the california labor law because my team does provide out of hours 24hr support for our operations team (work in aerospace). They were trying to take away our VPN but that would definitely require at minimum our hourly wage if we were required to commute to work to provide support. It would constitute restricted movement support and that has to be compensated. I am closely monitoring these things because one of the selling points was hybrid work.
Man, it's like I worked 147 hours (67 hours OT and most of it was double pay) AND lose a decent amount of money, but still made almost 1500 extra than I normally would have. I hate taxes with a passion but love overtime pay as if I never been paid before.
You're very right to bring this up! People should be talking about this, it makes no sense to be punished for working harder. Where I work it's common knowledge that it's not worth doing OT unless you get double time after passing 50 hours! Wars have been fought over high taxes this is no joke!
Here we go again... OVERTIME IS TAXED AT THE SAME RATE AS ORDINARY INCOME. Check the 1040 form. There is no place where ordinary income is listed separately from overtime income. What happens is the payroll system treats each paycheck like you'll be getting that amount for every paycheck over the next year and adjusts the tax withholding based on an assumed annual income. If you don't actually get into the next tax bracket, you'll just get that extra amount that was withheld back when you file your tax return. Another common one is that people don't understand our progressive tax bracketing system. If you go into the next tax bracket, only the amount that crosses over gets taxed at the higher amount, not all of your income.
So I DO taxes for a living. And I can KINDA explain what is going on in these cases. So when they (employer) look at your check. They see how much you make. Then They take that and ASSUME you will make that same on all checks. (its why the tax percentage is high on big checks.) They then look at what a person making that would pay on average with out Deductions or Credits. And take out what ever is needed to get to that amount If all checks were the same. They do this for each check separately. Meaning there is a program So if I usually make 2000 for a check and get for 26 pay checks. (bi weekly pay) then they gonna figure out taxes as if I make 52k and what needs out. BUT if next pay I make 3000 Cause of OT. They gonna give me the tax rate as if I make 78k in a year. Even if that is the ONLY check I make with that much. Bonuses are usually taxed at 22% for with holding. OR an aggregated rate which can be higher. Many just tax which ever is higher. This is why the more you make on a check. The Higher the estimated tax rate is gonna be. Specially if you make a GOOD chunk more it bumps you up a bracket or 2. They do not HAVE to do it this way. Its just the safest way to cover their rears. But Employers can get in Trouble if they do not with hold enough and it is with enough people. So they just cover the rear. Good news is most people get a portion of that back in Tax refunds. (A tax refund is LITTERALLY what you over paid in taxes. Not some magical money the government owes you.)
I agree with the sentiment on how many taxes we pay! Remember that all taxes are reconciled at tax filing time. So if too much was withheld on a check, that may get refunded based on your whole year.
Here we go again... OVERTIME IS TAXED AT THE SAME RATE AS ORDINARY INCOME. Check the 1040 form. There is no place where ordinary income is listed separately from overtime income. What happens is the payroll system treats each paycheck like you'll be getting that amount for every paycheck over the next year and adjusts the tax withholding based on an assumed annual income. If you don't actually get into the next tax bracket, you'll just get that extra amount that was withheld back when you file your tax return. Another common one is that people don't understand our progressive tax bracketing system. If you go into the next tax bracket, only the amount that crosses over gets taxed at the higher amount, not all of your income.
@@mdargusch so then assuming you'll be making that all year for that one paycheck your likely getting taxed more. While it may be incorrect to say overtime is taxed more as a technicallity it is. Also I'm at a tax bracket that I don't really get any of my income tax back.
@@rexusthevaliant6311 your tax withholding is higher due to overtime, but the actual amount you owe is determined by your total income for the year. Overtime will never hurt you for tax purposes. It doesn't increase taxes on any income in the lower tax brackets. And the time+half pay more than compensates for the increase in taxes at higher tax brackets.
@@mdargusch I'm not a lower tax bracket though but Im also not rich by any means so the tax man keeps all my money. I didn't get a dime back last year after putting in 100 or more hours of overtime.
@@mdargusch I'm right there with you. It drives me NUTS how many people complain about OT taxes, not understanding that any "extra" tax they pay they normally get back on their tax return. Plus the progressive tax system. No one gets it
Here we go again... OVERTIME IS TAXED AT THE SAME RATE AS ORDINARY INCOME. Check the 1040 form. There is no place where ordinary income is listed separately from overtime income. What happens is the payroll system treats each paycheck like you'll be getting that amount for every paycheck over the next year and adjusts the tax withholding based on an assumed annual income. If you don't actually get into the next tax bracket, you'll just get that extra amount that was withheld back when you file your tax return. Another common one is that people don't understand our progressive tax bracketing system. If you go into the next tax bracket, only the amount that crosses over gets taxed at the higher amount, not all of your income.
Look at an unemployed govt moocher, a part timer and a guy who works 80 hours a week at 20 bucks an hour. Bet they all get to spend close to the same amount after the guy who works pays for the other 2.
So we were doing a job out in California (we were paying Maryland taxes due to that being where we are based out of) and our supervisor had us log 10 hours of work a day even if we only worked like 2 hours that day, so we'd get 10 hours of overtime a week. This dude was convinced because we'd be under a higher tax bracket with the OT he was going to see a lesser paycheck than he normally has. He was ecstatic to see an extra $1000 in his paycheck. Lesson of the story is yes you may have to pay more in taxes with the OT but you'll still make more money overall. Now if the extra money is worth the extra work you put in that's up to you.
I had this exact discussion with my tax accountant, told her id rather see $300 less per week and gain back my 12hrs to actually enjoy life per week. She couldn't get it through her thick head that i didn't care about extra money...i already was well off doing base hours and actually spending time with friends was better for my mental health than having no life
TL:DR The highest Fed income Tax bracket in the US is 35% and that's before you math deductions(and not all dollars taxed same see below) for you're effective rate. Don't let anyone tell you you'll make less for working more, they failed math class. BTW the overwhelming Majority of anyone worried about OT math will fall in the 22%($41-89k) or 24% bracket as that will take you up to just over $170k in income before the next bump. Also important is The higher tax bracket only applies to money in that bracket. So for 2022 roughly I'm not putting to the dollar on all these go look it up, your first $10k is 0%, then $10-41k so $31k of you income is taxed at 12%, Then $41-89k or the next $48k taxed at 22%, Then everything over $89k plus taxed at 24%, If your over $170k into the 32% bracket and don't know how this stuff works I don't feel bad for you. As rough math if you're in a trade doing average+ OT and land near the $100k line, as more than half your earning fall into the 22-24% brackets you could expect to pay about 22% effective federal as the lower taxes on the first $40k takes the sting out of the higher taxes on the last $11k making the overall tax closer to the bracket below you. Plus any State taxes if you don't live in one of the good ones. But expect after deductions for the ok paid tradesmen working that OT somewhat regularly you'll probably take home close enough to 3/4 of tour earnings to do that as napkin math in your head as to if this Saturday volunteer shift is worth it. Never will you wind up in a over 100% bracket or even a 50% so you always make more money. You're payroll department might suck the way the hit you on abnormal big checks to be sure enough is paid but as mentioned any overpay will be returned, that's why we file a return.
@Multi68stang you are screwing yourself. This is the dumbest thing I have heard today. Your boss man is making out like a bandit, and you are smiling like hell while he does it.
Just file your w4 deduction as 34,000 on the form for 8 months and the standard deduction for 4 months and overpay your state taxes to cover the difference. Working 8 months exempt and 4 months on standard should equal out to zero but obviously you wont get a tax return. Save the money and invest it instead or more likely because of the bank situation, buy guns and ammo.
Everytime I get my paycheck, or look at my tax return info I become a Libertarian for like, a good five or ten minutes depending on the day. But then I remember "Crypto Island" and it subsides. 😂😂 I feel sorry for the new guy\temp.
Dear politicians, would you please use your powers to write legislation banning the federal and state income tax on overtime, so that the people that want to work hard to raise their family and get ahead rise up, Sincerely Johnny Taxpayer
Hyperbolic but made me chuckle. "It's all about the tables". OT causes the IRS math to think you make way more than you do so often the OT is taxed at 35% or whatever. The "good" part is that you'll usually get it the difference back at tax time. I've gotten some ridiculous refunds from OT taxes.
Not the IRS man. Employers are required to hold back Taxes. They decide how much. They just Use a screwy formula where they look at the Check. Assume EVERY Check will be like that. And then tax as if that. So if you make 1000 on one week pay they gonna tax like its 50K a year. If you make 1500 on another. They gonna tax THAT one as if you make 75k year. They do this to ensure they aint getting in trouble for not with holding enough. Cause if they do not. Then the employees have to pay it at the end and could be considered a Violation of Labor Laws. Which is Fines and such. Best YOU pay more now then them pay later is the mentality here. Its all about employers covering their behind.
@@calanon534 after I submitted forms for my BIA card and received it I tried to file my taxes the same way I have for years they said that my identity could not be verified looked into if my identity was stolen it was not for 2 years now I have been fighting this I can't even get a new ss card issued so I just work for cash anymore eh I don't mind but I'm fucked ina lot of ways
I do know that I'm not the only one that this has happened to some people I talked to about this had theirs fixed fast others like me are still trying to get it sorted out
Bro you're my hero. We should argue to invest our taxes as part of our right to vote and freedom of speech. Everything related to taxes becomes transparent. Keep at it man your doing great!
I get a little tired of having to explain this, but: overtime is taxed at the exact same rate as your regular hours, NOT AT A HIGHER RATE. It can change your tax bracket and rate when filing, but not on a weekly basis.
Most accounting software will figure the taxes every week based on that being your yearly income. It's mostly a HR/secretary/accounting not caring to configure it any different. I have had years where the 2000 hours of ot got me into a tax bracket that gave me a heart attack. Could have cut 100 hours and dropped a tax bracket and gotten a return, instead I got to pay in. Worked 40 weeks and paid over $40k because I was trying to get rid of debt, instead of spending on write-offs like a responsible adult.
You are one of the few people i have ever encountered that gets it. I worked with a guy one time who was complaining about it. I asked him to get a check stub where he worked 40 hours and we figured what percentage he payed in taxes. We them looked at a check where he had overtime and figured the percentage he payed in taxes. On the overtime check, he had paid 2% more. The dollar figure was large because he grossed so much more but the percentage was minimal.
Payroll has to withhold at the rate specified by your W4 based on the weekly federal taxable wage amount. If you filled out your W4 as single with no dependents and a standard deduction, they have to extrapolate your pay as if it were going to be that for the entire year and then figure the proper withholding based on single no dependents and standard deduction. Obviously that would be more, if you suddenly earned hundreds of dollars extra during a pay period. If you want your tax withholding to be different you have to submit a different W4. It’s not a choice anyone is making at the company. The company cannot decide to change your withholdings or change the calculation methods- only you can make that decision and that is communicated by a W4. If you’re going to work a bunch of OT for a month, you can submit a new W4 with more than the standard deduction or add a dependent to the calculation. Just remember to change it back. They’ll update the settings in the payroll software and you would have comparatively less withheld. Or you can increase your HSA or 401k contributions for a period. They just do what YOU tell them to do.
Last year I only worked 9 and half months, I ended getting a total of 3k deducted from my checks just in state tax and I owe another 3k to federal because I was trying 😅 to save in the moment 😵💫 I'm living paycheck to paycheck and they say I made quite a bit. I don't see how if 2 months out of the year I worked, go just to taxes And billion dollar companies get a refund???
Us Arkansas Boys REALLY feel this. Especially here in Jefferson County. Taxes here SUCK. ETA: And damn sure don't speed in Arkansas. THEY WILL LAUNCH A STATE TROOPER AT YOU! Just ask the local legends: the Byrdman can fly.
That's how it feels, but people do need to know unless you're getting kicked off of some kinds of benefits by making more money, you're never going to have less money by the end of the year by getting paid more whether it's a raise or overtime. You just might have to wait for your refund and hope you filed it right.
This is so true. There was recently a situation in Colorado Springs where a man called the police to tell them someone was going to try to kill him. The police never bothered to show up, and an hour later he had been killed. In the mid 2000s in Castle Rock Colorado a woman had a restraining order on her estranged husband. He showed up and kidnapped her three children. That woman called the police several times, but they never even bothered to do anything about it. They shot the man dead later only when he showed up at the police station with a gun. The children? All three of them were found dead in the back of his car. The woman sued, and through a series of appeals the case made it all the way up to the supreme court. The supreme court then declared that police are not obligated to aid you in any way whatsoever. In fact, they went on to say, the police are only obligated to protect you if you are in their custody.
I once spoke with someone who use to work at a DMV and she confirmed even if it's you first anything, you can ruin your life by going 15 over the limit.
Depends on the state. My state, is a $40 ticket and you go on your way. (State trooper, no reason to haul ass in town, you do deserve a penalty for a school zone for example).
I learned an interesting fact about taxes and ot. So your overtime isn't taxed more than regular time the company you're working for just calculates your withholding on weekly basis, for example if your typical check is $500 per week they multiply that by 52 and withhold the appropriate estimated amount for your yearly income based off that number so your yearly taxed income for $500x52 is 26,000 and you're company withholds the appropriate amount based on the first and second tax bracket on that particular paycheck. How however if you work 80 hours the next week and you (before taxes/withholding btw) make $1,250 then your estimated yearly income is 65,000 which is withheld based on the first second and third tax bracket rates for that specific paycheck, the result is it seems you're taxed far heavier on overtime but in actuality its your withholding not your taxes that goes unreasonably up, if you have sporadic spikes in overtime and no overtime then you will almost always get money back on your tax return because the calculations for your overtime withholding was wrong.
One paycheck a year I set myself to Tax Exempt with HR and work a ton of OT. Then go back to regular tax status. Works out at the end of the year when filing taxes so I only get a small return... But man oh man that month of OT is sweet. I know I would get most of the money back in the tax return anyhow... But it's depressing to work all that OT and see it all disappear to taxes because the company takes taxes "at the rate of" under the assumption that I always will make that much all year.
The best way to do it is to not have any taken out, put it in savings, and write a check for what you owe when it's tax time. Why give the government a no interest loan when you can made interest of of it. If you're not the best at saving, the second best is to have it set up to take out just enough to pay them, or close as you can. If you're really bad at saving, then yeah, just have them take it all out.
@@tangydiesel1886 I do have the w4 tax exemptions set so I get a small return, so they only get what I owe and little else. The issue is that one week of OT will pull a ton more taxes than necessary if I keep my typical status thus resulting in a larger tax return next season. Making my self fully exempt for one paycheck off sets this back to normal amounts and ensures I get the money that pay period instead of months later in tax season.
I made 96k last year. Paid 25k in taxes. And had my tax agent tell me "your refund will be $2. $85 owed minus $2 from your return... you don't get a return and owe h&r block $83".
In my previous career, one of the first things we taught new hires was to insist on comp time for overtime over so many hours. Mind you, it was a city so just because we said we wanted comp time, they might just decide to pay it anyway ... and we'd end up with a smaller check. Ugh. Taxes.
Hah, I lose 30% or 32%, forgot which on my OT right off the top. Work more? Well surely we should take more money from you! Not like I am sacrificing extra time of my life or anything.
I came across 2 factorys in my life that worked 7 days a week 12 hour shifts with no overtime pay increase. One was in Redding California another in Dexter Missouri.
My favorite thing is how I got taxed federally on my state income tax return from last year because it was large enough to count as income. I got $54 last year on my state tax return. Not even enough to buy the new call of duty and uncle Sam still needs his cut.
This video is the perfect representation of people working in California where overtime is your taxes and you get a regular paycheck. 😂😂 I live in California and I feel what he’s saying.😢
@@cptmiller132 CA has some of the best OT laws in the US. You get over time after working 8 hours. The rest of the country you have to go over 40 in a week for OT.
Until you're a billionaire like Elon Musk or Jeff Bezos and then you can file as having zero income once every few years while still living in multiple mansions
It's a sad day in the country when a comedy youtube channel like Ricky and the boss speak the truth but the ones who are supposed to be creating policies to benefit the country will lie to our faces and steal our wallets. I don't even look at my pay stubs anymore because the amount of taxes taken out just enrages me.
I remember many, many, many years ago I had my first welding job that was paying me weekly. I had one paycheck with a clean 40 hours and 0 overtime, that paid me MORE than the next paycheck that had around 41.5 hours on it. It wasn't much more, but I had it figured out that I had to put in around 43 hours to get any benefit on my take home. (I was making a whopping $3.85 per hour as a certified welder at just 17 at the time) The only place I could find that would take a chance on a 17 year old kid. I ended up as Supervisor just a year or two later. LOL.
Government: "hey yeah so, we're gonna tax the living eff out of your paycheck. Oh, and we're also gonna tax you on ANY purchase you make with that taxed income. Oh also inflation is thru the roof right now and everything costs more than ever. And OH by the way, I almost forgot ...... ALL of those tax rates are going to continue rising." American Workers: 😐 "men, grab your pitchforks, torches, and guns. The time has come, for us to fulfill what our Founding Fathers KNEW we would have to do someday"
Overtime is taxed the same as any other income. At the end of the year the amount of income from overtime is not at all relevant because you'll owe the same amount either way.
The #s were a bit extreem but the upside is that when working most of the year at about 40 hours. Results in those taxes paid @ extra OT weeks will result in a larger refund. Taxes actually due are by yearly income not weekly. It sux (I've lived it) but it does prevent a massive debt owed April 15th and can be used to build an emergency fund.
Working one job 4 hours overtime cost me $40 on my check! The employer told me it was the cost of doing business. So I looked him in the eye and said, "figure out how you're going to get $80 more a week in my check and until then I'm packing my s***!" Got a $2.50 an hour raise!!!
I went exempt all my years working. One time the office lady said I couldn't. Said I had to be a full time student, to be exempt! My reply was Ma'am I'm in the school of LIFE don't you learn something every day?
