DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Overtime, Taxes, and how to make sense of it?

**SM9WI8oI** · 01-14-2010, 05:24 AM

If it's mandatory overtime, is it specified in your employment contract? If so, it shouldn't be taxed as extra pay?

The way our stupid income tax system works is just that, stupid. If working overtime gets more taxes taken out of your pay, then you should get more back at the end of the year unless it bumps you up into the next tax bracket. And if you're unlucky enough to be right under the next tax bracket with normal pay, working any paid overtime can actually cause you to bring home LESS money than normal because the system is designed to take out the appropriate amount of taxes based on a single pay period.

One year I got boned because at the end of the year I ended up owing a couple hundred dollars to federal taxes because my employer somehow ended up not taking enough money out for the year.

01-14-2010, 05:24 AM	#14
SM9WI8oI Join Date Oct 2005 Posts 412 Senior Member	If it's mandatory overtime, is it specified in your employment contract? If so, it shouldn't be taxed as extra pay? The way our stupid income tax system works is just that, stupid. If working overtime gets more taxes taken out of your pay, then you should get more back at the end of the year unless it bumps you up into the next tax bracket. And if you're unlucky enough to be right under the next tax bracket with normal pay, working any paid overtime can actually cause you to bring home LESS money than normal because the system is designed to take out the appropriate amount of taxes based on a single pay period. One year I got boned because at the end of the year I ended up owing a couple hundred dollars to federal taxes because my employer somehow ended up not taking enough money out for the year.
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