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.
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.
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.
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 😂😂
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
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.
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.
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.
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.
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???
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.
@@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
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.
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.
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.
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 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).
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.
As a Florida resident with my medical card and currently working in southern Georgia. I do be making them 2 hour trips and buying a whole bunch but technically as long as I’m there it’s no problem
Bro you ain't lying sometimes I work 105 hours and the last 2 days goes directly 2 taxes. It's fucking sad so I had to start going exempt on those type of checks but they get it back at the end of the year
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.
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.
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.
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.
Overtime below $100k total gross income. Should be tax free. There should also be a lot of tax and spending cuts on top of that. But I would stop considering throwing things in harbors if they gave at least that...
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.
in my union in California we get back our OT pay in December it's a nice $5k-$9k x-mas check it is funny when new folks realize they won't see their OT pay sucks the spirit right out of em
Love your content can you please do a video on road work awareness my company just lost a full crew today on md 695 you have the largest voice for construction worker right now...please help im tired of going to funeral home for good people...
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.
Almost true, if you get a decent CPA, or tax expert who can help you with your taxes, you do get it all back (what you payed) but most of us don't, so we don't. So to cover thier ass, while working overtime you over pay in taxes incase you go into a different tax bracket, but shouldn't worry about it. Sucks to work that hard and wait a year to see the rest.
It's sickening how much we pay in taxes... on everything
And they don’t do shit with the money they just give it to other people
Somehow the working class pay more taxes and have less social services than nearly any industrialized nation. Wonder how that happens...
@@sevenguardians7517ike multimillion dollar cop training compounds in the forests of Atlanta
Its called gross income, because its gross how much they take in taxes
good to know that working people pay so much, and then billionaires get to exploit loopholes to pay almost nothing
Overtime should not be taxed at all. I will die on this hill
Ill bury you cause they're not going to change it 🤣
Yes
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
standing by your side, brother
Taxation is theft. Especially since it's not even being used the way it was meant to be used.
The actual worst thing you can do, in terms of law, is expose government corruption.
They kill you.
Shhhhh
I seen some people went missing with 0 investigation even with relatives seeking help.
corruption... or incompetence?
Facts
Or try
I was laughing so hard... Until you got to the 2 things worse than tax evasion, and I started crying because it's so true....
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.
Seriously so true 😂
"throw money at it and hope you got it right..." I'm ☠️! Too real!
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.
Thats why I hate salary jobs they overwork and underpay you
Punished for working hard. Do you see a trend.
@@breckfreeride I totally agree
Boss man out here speaking hard FACTS!
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
It's almost like they're serving and protecting... business interests
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.
Half the child predators are in the government
I remember my first big check after joining the union, I damn near had a heart attack when I saw that they had taken over a thousand dollars from me.
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.
@@KevinZ.000 I'm guessing you went straight in as a journeyman instead of an apprentice?
Helped box out couple houses hung couple lite fixtures and can't tell them anything ever again knows everything 😂
@@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 😂😂
I'm literally on my 20th hour of OT this week about to cry thinking of how much taxes I'll be paying
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
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.
Yes you make more then normal but still not as much as you should if it wasn’t for taxes.
Yep that's the trap.
And anything over 60 hours is tax a lot.
@@TheTexasCowboy56 It's all taxed the same at the end of the year regardless of how many hours it is.
@@PGspeed88 Sure at the end of the year yes but I’m just talking your paycheck paycheck.
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.
No they're sending it all to Ukraine.
To this day none can tell me what the government is doing with the taxes they take from us
Military spending and tax cuts for millionaires. You're welcome.
100 BILLION to Ukraine
Their pockets
Bail out banks and privately owned companies, who already have taxes reductions.
They spend it on everything lol and their pockets
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.
4 to 6 hours is all I work extra for ot , they ain't getting any more kindling from me, I'm with ricky.
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.
It’s truly disgusting how accurate the feelings my man’s is feeling are.
This video hit me right in the soul.
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.
I stopped working overtime when I discovered this.
i mean yeah, why bother right you're not making enough money to justify the wasted time.
My guess, Boss mann recently got a speeding ticket.
And got caught with weed in a state that it's not legal in.
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.
@@Lee___H
My job doesn’t do overtime but comp time instead. It’s nice to be able to call my boss and ask for a day off without taking a pay cut.
@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.
@@Multi68stang except you're taking a 33% cut on any OT you do.
It sucks how little PTO some places give
Love the videos you make and this one just suddenly made it to the top of my list
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.
Shit I’m already ahead of you on the guns and ammo thing…
@PsychopathicV2 you say that but my 10k rounds of common calibers says otherwise 😘. That said, keep stacking.
@@doctoroptical952 shit never mind. You got me beat on that. For now…
It’s technically correct that they practically “burn” the money, since they’re simply removing currency from circulation.
Man you just slammed the nail on the head you didn’t just hit it. One of your best
Man that was some deep information there I love it most are scared to speak their mind but some of us aren’t thanks
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
No.
Less taxes on us means smaller paychecks for them.
This hit home dude. All too well!!!
On Point 🤘🏾🤘🏾🤣😭
Everyone’s got to learn the hard way.
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.
This guy gets it
Overtime for me is taxed 40-50% :| looking forward to my tax returns though
This hit home for me 😂😂
We NEED another Tea Party
They are giving it to Ukraine
They are laundering it in Ukraine
Easy fix, NEVER WORK OVERTIME!
This guy is just fucking Great !! It just Makes my day watching these videos.
keep them coming!!! ur awesome!!!
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???
Tbf the govt makes more money off those companies than the companies themselves do.
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.
It’s almost like that’s not what people are mad about, they are mad that overtime is taxed at all.
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.
It CAN be taxed at a higher rate but its a state by state case. It depends on your state income tax laws.
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.
Currently in S. TX….. this checks out
U r speaking the truth boss man
16th amendment was only suppose to be temporary...
I was expecting Ricky to tell him thats why he has soooooo many kids, dependents for tax purposes...
Huhuh those three ain't normal? Daum Michigan pride FR 🤣🤟
This Whole skit is FACTS!!!! FNG's better pay attention.....or just pay and deal with it. 😂😂😂
I remember the first real job I had, they took as much out in taxes as I made at a fast food job.
Learned about hyperboles and figured you'd take one out for a test drive?
@soothing_stream not uhhhh....not sure you know what a hyperbole is my guy. That, or you honestly don't know how much tradesmen make.
@@rayzerotI pay way more in taxes than I made total working fast food.
Haven't paid taxes in years since the IRS determined I'm not a real person and refuse to correct this matter how hard I try get it fixed
Not sure that's a blessing or a curse. Without my tax bill I wouldn't need credit though, so I could sure live without the IRS.
Please. Enlighten us. How.. in the Washington D.C... did that hppen?
@@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
@@timsunmey7143 Your social security retirement payments are going to be tiny unless you can get that sorted out
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.
Man I’m laughing in my head and crying on the inside 😂 😢 being I’m from Indiana but work in Illinois taxes can kiss my ass this year
I wonder how many speeding/seatbelt tickets are written nation wide daily. It's got to be like 1 a second or something
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.
Heh. I got the border town exemption for state income taxes. So I get lower property taxes but no AR income tax.
Yea, and dont run from the state, they will pit you at 150+, no f's given.
This is butifull. Dude you are the best.
Yep.. that was me!! Lol THAT WAS ME! Lol
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.
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.
@@aaronlandry3947 sounds like you got it. Don't want to give them extra.
@@tangydiesel1886fyi, if you owe money you usually get a fine added in as well for not withholding enough.
Some real talk on this one
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!
Speeding fines is so that they can travel to those other states to buy their weed.
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'm guessing you live in Virginia near the "million-dollar mile".
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.
Bon fire 🔥 in south Texas to stay warm.... 😂 😂
Would actually be expected to get around $1600 for an 82 hour week at $20/hr, but still taxation to the level we have it today is theft.
Is all ways theft.
Good health care is still expensive despite paying high premiums.
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.
As a Florida resident with my medical card and currently working in southern Georgia. I do be making them 2 hour trips and buying a whole bunch but technically as long as I’m there it’s no problem
We dumped the tea in the harbor for a quarter of 1%.
All that tax $ is going to Ukraine
Lets go ricky
I didn't know where the ending was going, but that is so true. 100%
Bro you ain't lying sometimes I work 105 hours and the last 2 days goes directly 2 taxes. It's fucking sad so I had to start going exempt on those type of checks but they get it back at the end of the year
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.
Many would say if you got 54 bux back, you came out about perfect. You werent giving them interest free money.
@@baddriversoflittlerock8359 I"d love it if I owed a dollar or three every year. Cost them that much to process it. 🤣
I think we gave 100 billion to Ukraine. Someone said world hunger could be ended for 6 billion, but we can't find money for that.
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.
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.😢
It's the whole country
@@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.
@@KevinZ.000 that's nice... but the government still taxes overtime at an increased rate just like the rest of the country
@@cptmiller132 I agree, but CA has better conditions than the rest of the country, and it still sucks.
You call it taxes I call it stealin
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.
Overtime below $100k total gross income. Should be tax free.
There should also be a lot of tax and spending cuts on top of that. But I would stop considering throwing things in harbors if they gave at least that...
The more you make the higher tax bracket ur in lol. Clapping my hands and laughing, this video was funny.
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.
Don't move anywhere else on the planet then. Most countries pay more than us in taxes
This is the most true thing u have ever said thank u for making me laugh everyday
in my union in California we get back our OT pay in December it's a nice $5k-$9k x-mas check it is funny when new folks realize they won't see their OT pay sucks the spirit right out of em
We all complain bout Uncle Sam stealing in broad daylight on OT payments
The pain and horror of taxes, they don't tell you how much you owe but you owe and if you don't pay, you will be made to pay.
Love your content can you please do a video on road work awareness my company just lost a full crew today on md 695 you have the largest voice for construction worker right now...please help im tired of going to funeral home for good people...
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"
OT is taxed high in order to make it so no one wins by working more than 40 hours and we've forgotten that original intent.
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.
Working the 4th 12 hrs of double time and a half. Plus 52 hours of OT this check is going to look nice before taxes
Money's going to Ukraine! FJB 💯
Ain't you ever seen the Onion News? They dump the money in a hole.🤣
Lmfao ibew48 here. I'm dying rn.
You are 💯 % honest
Straight truth
Y’all know damn good n well where that moneys going😂
"My homies and I would have been stacking bodies by yesterday" - George Washington...probably
Almost true, if you get a decent CPA, or tax expert who can help you with your taxes, you do get it all back (what you payed) but most of us don't, so we don't. So to cover thier ass, while working overtime you over pay in taxes incase you go into a different tax bracket, but shouldn't worry about it. Sucks to work that hard and wait a year to see the rest.
30% of mine is taken before OT. AND, I got half of my back pay taken away from me for taxes
Ya know, I'm starting to think ol Ricky's right there boss.