Sorry I am late answering your question. No, I am not collecting SocSec. But apparently, I am paying for it. Word is that after 54-55 hours the tax rate climbs. I will tell you the truth. I make $18/hr. $27 0n overtime. The difference in my takehome pay from 60 hours to 62 hours was $16. So supposedly I make $54 in two hours of overtime. They took $38 and gave me back $16.
Nope. Your employer might increase withholding, but at the end of the year you're taxed on your total (adjusted gross) income FOR THE YEAR.
$18/hr is almost exactly the cutoff between the 15 and 25% brackets (if we ignore all deductions), BTW.
What's probably happening is some formula looks at what you made in one pay period and assumes you'll make the same all year. As your income (looks like it will) hits the higher bracket, they withhold at a higher rate (probably on the whole check, which could make it look like there is little difference between 60 and 62 hours, since they're taxing all 60-odd hours a little more).
But anyway, you're still making time and a half, and you still only pay additional marginal taxes on the adj gross income about the next tax bracket. You just have to wait until you file to get it.
