Federal tax on sicpay check

[konsole]

Normally my federal income tax as a percentage of my gross pay is around 6%. This is just the federal income tax and not the FICA stuff I'm talking about. For the check I just got for the days I didnt take off sick the federal tax was 25%, which makes the combined federal taxes on this check to be around 40%. My tax bracket is suppose to be around 15%.

Is there something I am missing about this high federal income tax on the sick pay check, or did payroll likely screw up?

 

[Wally]

Obama needs the dough?

 

[Northbaypkg]

Normally my federal income tax as a percentage of my gross pay is around 6%. This is just the federal income tax and not the FICA stuff I'm talking about. For the check I just got for the days I didnt take off sick the federal tax was 25%, which makes the combined federal taxes on this check to be around 40%. My tax bracket is suppose to be around 15%.

Is there something I am missing about this high federal income tax on the sick pay check, or did payroll likely screw up?

NEVER cash out your sick days. They tax it like it's a bonus check, which means 40% taxes like you said. I learned that the hard way my 2nd year working and vowed to never cash out again. From then on I just made sure to use all my sick days. Plan a Friday/Monday off every now and then and give yourself an extended weekend. That way you can get your deserved sick pay charged taxed at a normal rate.

 

[upschuck]

You'll get it back on your return.

 

[UpstateNYUPSer(Ret)]

This is why you use all of your days.

 

[MendozaJ]

It doesn't effect your standard deduction.

 

[box_beeyotch]

In my local, you have to use all your personal days but are allowed to rollover your sick days. I never call off sick, so I roll mine over just in case of a long lasting illness.

 

[konsole]

ok so if I'm understanding this right, sick days should be used because the unused sick days check will have a higher then normal federal income tax because its considered a bonus check. However, utlimately that money will end up coming back to me at tax return time.

So use the sick days and dont pay the extra tax money, or dont use the sick days and the extra tax money will just be held until tax return time.

 

[UpstateNYUPSer(Ret)]

ok so if I'm understanding this right, sick days should be used because the unused sick days check will have a higher then normal federal income tax because its considered a bonus check. However, utlimately that money will end up coming back to me at tax return time.

So use the sick days and dont pay the extra tax money, or dont use the sick days and the extra tax money in the check will just be held until tax return time.

Personal and sick days are meant to be used.

 

[Northbaypkg]

ok so if I'm understanding this right, sick days should be used because the unused sick days check will have a higher then normal federal income tax because its considered a bonus check. However, utlimately that money will end up coming back to me at tax return time.

So use the sick days and dont pay the extra tax money, or dont use the sick days and the extra tax money will just be held until tax return time.

Precisely.

 

[box_beeyotch]

In my neck of the woods we can roll our sick days over.

 

[DOK]

NEVER cash out your sick days. They tax it like it's a bonus check, which means 40% taxes like you said. I learned that the hard way my 2nd year working and vowed to never cash out again. From then on I just made sure to use all my sick days. Plan a Friday/Monday off every now and then and give yourself an extended weekend. That way you can get your deserved sick pay charged taxed at a normal rate.

You get the money back when you file your taxes in April. If someone is concerned about making as much money as they can, cashing them in can help out that cause.

 

[Indecisi0n]

I use my sick days x2

 

[UpstateNYUPSer(Ret)]

If someone needs to cash in sick days just to make ends meet they need to work on their finances.

 

[UPSGUY72]

This is why you use all of your days.

and then some more dead days.

 

[UpstateNYUPSer(Ret)]

and then some more dead days.

When I was married---yes.

Not any more.

 

[ski or die]

I get 365 sick days a year and I am not allowed to roll them over. And still have to pay taxes on the sick days. Really sucks.

 

[DOK]

If someone needs to cash in sick days just to make ends meet they need to work on their finances.

Nah, everyone has different goals in life, not for anyone to judge IMHO.

 

[you aint even know it]

If someone needs to cash in sick days just to make ends meet they need to work on their finances.

What if you are a part time grunt?

 

[UpstateNYUPSer(Ret)]

What if you are a part time grunt?

Get a 2nd or 3rd job.