Worked fewer hours but paid higher income tax

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minnbills
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Worked fewer hours but paid higher income tax

Postby minnbills » Thu Apr 30, 2015 3:38 pm

Dumb question here - I am paid hourly at a small firm. One paycheck I turned in 84 hours, and the next I turned in 80. On the second I was taxed about $100 more in Fed income tax.

Is this possible, or did the accountant make a mistake? I asked my employer about it and they are looking into it, but I don't see how this could happen.

mvp99
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Re: Worked fewer hours but paid higher income tax

Postby mvp99 » Thu Apr 30, 2015 4:01 pm

couldn't the 84 signify higher total annual income and so he retains a larger estimate? 4 hours seems pretty much nothing though

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minnbills
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Re: Worked fewer hours but paid higher income tax

Postby minnbills » Thu Apr 30, 2015 4:06 pm

mvp99 wrote:couldn't the 84 signify higher total annual income and so he retains a larger estimate? 4 hours seems pretty much nothing though


Right but what I'm saying is I worked fewer hours (and therefore received less pay) but was taxed more

dixiecupdrinking
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Re: Worked fewer hours but paid higher income tax

Postby dixiecupdrinking » Thu Apr 30, 2015 4:14 pm

Were your deductions different for any reason?

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minnbills
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Re: Worked fewer hours but paid higher income tax

Postby minnbills » Thu Apr 30, 2015 4:15 pm

dixiecupdrinking wrote:Were your deductions different for any reason?


No - I claim one deduction.

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lacrossebrother
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Re: Worked fewer hours but paid higher income tax

Postby lacrossebrother » Thu Apr 30, 2015 4:21 pm

Post your pay stubs brah

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Yardbird
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Re: Worked fewer hours but paid higher income tax

Postby Yardbird » Thu Apr 30, 2015 6:16 pm

minnbills wrote:
dixiecupdrinking wrote:Were your deductions different for any reason?


No - I claim one deduction.
He might have meant pre-tax salary deductions (e.g. health insurance, cafeteria plan, retirement, etc.). If those numbers changed (if your first paycheck had more), then you'd be taxed more on the second.

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rinkrat19
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Re: Worked fewer hours but paid higher income tax

Postby rinkrat19 » Thu Apr 30, 2015 6:30 pm

shadowofjazz wrote:
minnbills wrote:
dixiecupdrinking wrote:Were your deductions different for any reason?


No - I claim one deduction.
He might have meant pre-tax salary deductions (e.g. health insurance, cafeteria plan, retirement, etc.). If those numbers changed (if your first paycheck had more), then you'd be taxed more on the second.

Could be something weird like health insurance is only taken out of the first paycheck per month.

dixiecupdrinking
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Re: Worked fewer hours but paid higher income tax

Postby dixiecupdrinking » Thu Apr 30, 2015 6:35 pm

shadowofjazz wrote:
minnbills wrote:
dixiecupdrinking wrote:Were your deductions different for any reason?


No - I claim one deduction.
He might have meant pre-tax salary deductions (e.g. health insurance, cafeteria plan, retirement, etc.). If those numbers changed (if your first paycheck had more), then you'd be taxed more on the second.

Yeah, this.

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minnbills
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Re: Worked fewer hours but paid higher income tax

Postby minnbills » Thu Apr 30, 2015 6:48 pm

Gotcha - nothing like that changed between this paycheck and the last one.

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lacrossebrother
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Re: Worked fewer hours but paid higher income tax

Postby lacrossebrother » Thu Apr 30, 2015 7:28 pm

minnbills wrote:
mvp99 wrote:couldn't the 84 signify higher total annual income and so he retains a larger estimate? 4 hours seems pretty much nothing though


Right but what I'm saying is I worked fewer hours (and therefore received less pay) but was taxed more

No the idea is that they're now expecting you to be in a higher tax bracket. Since you worked basically 6 hours extra (4*1.5)




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