While they were working, she mentioned that between paying her babysitters and so forth and paying for extra gasoline, the overtime was actually costing her money.. Has anyone else on this board had a similar experience? Especially anyone with kids?... I remember when I got overtime in the past, it was nice but it seemed like taxes took a lot of it...
shareI used to work in a factory printing things in 90s, and there was about a 3-4 month stretch for one customer where EVERYONE was on 50+ hr weeks. that's about the point where the taxes really ate up the pay.
then of course, the supervisors were on salary and one finally did the math and demanded to be put back on hourly or he'd walk. it took about a month to replace him. NO ONE wanted the job.
=-=
#HowardWasRight
Not me, but my mom, as a single mother raising a baby/toddler (me) and a kindergartner (my sister), and even past that age for both of us. She just found that it cost less to work part-time and be home with us in the afternoon, evening, and weekends, instead of working full-time and needing to work out a babysitter or daycare for us. Though that was a little different because there wasn't overtime involved at all, just regular part-time job vs full-time.
shareI'm not a parent, but I have had somewhat similar experiences. I've worked overtime a number of times and it's true, taxes do eat it up. It wasn't overtime, but one time I was working as a dishwasher in a lodge and I was asked to help bring luggage to some guests' rooms. I received a $30 "tip" for that, which was promptly eliminated due to a $30 income tax.
shareI've had a raise that actually cost me because it put me into a higher tax bracket. Stupid, right?
shareHow is it costing you money.....was the higher tax bracket you moved into 105% or something?
shareIt's not that complicated. Just look up the tax brackets online, and you can see for yourself.
shareRight.....it isn't. So demonstrate to me, using your numbers and the aforementioned tax brackets that are online, how your raise cost you money. I will be very interested to see how your take home pay was less with a higher salary than it was with a lower salary based solely on you moving up into the next tax bracket.
shareI have a feeling that even if I explained it, you probably wouldn't be able to grasp it very easily, since Googling "federal income tax brackets" is beyond your skill. But I'll try anyway.
http://taxfoundation.org/article/2016-tax-brackets
So if you are single making under $37.65K, you only pay 15%. If you get a raise that puts you above that, even if it's just by a little, you'll suddenly start owing 25%. You need a substantial raise in order for that to be worth it. You've never heard of people turning down or renegotiating raises because they realize it will cost them more federally?
I think you are a little confused on how things work, junior. Let me spell it out for you:
Only the portion you make above each bracket do you get taxed at a higher rate, not the whole thing. It's called marginal tax rate; familiarize yourself with this concept before you mouth off, p h u c k f a c e.
To spell it out for you at your nursery school intelligence level, using your example above, if you make 37,250k, your take home is 31,662.50 (37,250*.85); if you make 40,000, your take home pay is 33,725 (37,250*.85 + 2,750*.75).
There is no scenario whatsoever where your overall take home pay is more with a lower salary than it would be with a higher salary, because you moved into a higher tax bracket with a higher salary. So your story was BS and you are an idiot.
See if you can grasp this before you open your piehole again and try to smart off to someone who is way more educated on things like this than yourself. So, next time your being given a lesson, just shut the F up and listen, m'kay?
[deleted]
maye not it working against me money wise but there was a time where I was working 55 hours a week and was not making overtime at all. 'they just didn't do overtime pay'.
I was working Monday-Friday and 'they needed me' for 12 hours a day. 7am to 7pm [day care center] and we were all lucky to get a lunch hour that we didn't get paid for!
and as soon as I go to part time so I could go to summer graduate school, THEN they started giving overtime.
Oh God. Fortune vomits on my eiderdown once more.
I thought overtime was federally mandated by the Fair Labor Standards Act? Unless you were paid salary, of course. Then you'd never see any.
I know there are certain exemptions, like agricultural or seasonal jobs, but M-F usually aren't.
I was but back then [1998 or so] these people were able to get by without the law getting involved.
also, we didn't have to punch a time card. we had to sign ourselves in and out and that was the only way to tell if you were in or not.
Oh God. Fortune vomits on my eiderdown once more.
I work in a factory, and we don't see overtime until we had worked 40 hours. So, if I worked 10 hours a day M-F everyday, I won't count overtime until Friday.
share[deleted]
For anyone who says that rich people don't pay taxes, is spouting b.s. Because the more money one makes(such as OT) the more is taken out in taxes.
share