• arrow74@lemm.eeEnglish
    11·
    22 hours ago

    Oddly enough it kinda does. OT can make you pay out more taxes on that one check since withholdings are calculated by check. Basically the government/payroll system thinks you’re going to be making that every week so more taxes will be taken out.

    In reality this only effects the size of your tax bill or return at the end of the year.

    • shalafi@lemmy.worldEnglish
      5·
      17 hours ago

      That’s what people see and exactly why they think they got kicked up a whole tax bracket.

      • jj4211@lemmy.world
        3·
        17 hours ago

        The whole notion of “kicked up a tax bracket” is also a misleading thing. Only a piece of your income goes into the “new bracket”, all pay under the new bracket is taxed as they would have been used to.

    • w3dd1e@lemm.ee
      2·
      15 hours ago

      Exactly, and it also depends on what withholding you have requested.