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I may set a new personal record for Overtime


OILERMAN

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I have had had 90 hour work weeks before.. You will cry when you see how much more uncle sam gets on that OT... You will get about half of anything you work over 60 hours..

 

'This is a myth, you're taxed for the year, not each paycheck. I think it depends on how your employer withholds taxes too

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How is this not known?

 

Because someone said it and then everyone keeps repeating it over and over

 

Very few people understand what our tax system really is, a progressive tax rate

 

Unless the OT bumps me into the next tax bracket at the end of the year it won't matter. Then even if it does I'm only charged the extra % for the money above the old tax rate

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Because someone said it and then everyone keeps repeating it over and over

 

Very few people understand what our tax system really is, a progressive tax rate

 

Unless the OT bumps me into the next tax bracket at the end of the year it won't matter. Then even if it does I'm only charged the extra % for the money above the old tax rate

 

 

Correct.  It is pretty simple.  Your company's payroll annualizes your overtime, which bumps you up a bracket or two if a lot of overtime in a week, therefore dollar for dollar, that week has higher withholdings.  All you have to do is go to payroll and add an exemption or two to your W-4 to reduce the withholdings before the overtime or going forward to recoup it if you want it back now. 

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 It depends how it is getting processed. Some HR process OT like a bonus and automatically withhold 25%, since it is a federal law for processing a bonus, regardless of W-4.

 Of course, you'd get some of the money back after you'lll file taxes next year.

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  • 11 months later...

I didn't beat last year's totals but I put up some crazy numbers

 

The last two weeks I worked 47 hours of OT.

 

I've also had 3 or so raises in between, I didn't make as much but it came close

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