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Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 3:38 pm
by minnbills
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.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 4:01 pm
by mvp99
couldn't the 84 signify higher total annual income and so he retains a larger estimate? 4 hours seems pretty much nothing though
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 4:06 pm
by minnbills
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
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 4:14 pm
by dixiecupdrinking
Were your deductions different for any reason?
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 4:15 pm
by minnbills
dixiecupdrinking wrote:Were your deductions different for any reason?
No - I claim one deduction.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 4:21 pm
by lacrossebrother
Post your pay stubs brah
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 6:16 pm
by Yardbird
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.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 6:30 pm
by rinkrat19
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.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 6:35 pm
by dixiecupdrinking
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.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 6:48 pm
by minnbills
Gotcha - nothing like that changed between this paycheck and the last one.
Re: Worked fewer hours but paid higher income tax
Posted: Thu Apr 30, 2015 7:28 pm
by lacrossebrother
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)