Bagels
Family Leave Fridays!!!
You're
about paying too much in taxes. The other posters are claiming (for example) that if they work 60 hours, it's the same net pay as if they worked 52, as taxes completely swallow the entire additional amount. That's 100% bogus. Paycheck withholdings are based on income & exemptions, so it's possible (although doubtful) that paycheck withholdings may make net pay similar, but when you file your taxes, it that paycheck tipped you into the next bracket, you'll pay 3% more of your pay + any possible increase in state/local taxes. That's it. 3% is a far cry from 100%. Like I said, paycheck withholdings are done for convenience; taxes withheld are accurate ONLY when each paycheck is similar. For many hourlies at UPS, this is simply untrue. I've had a $100 paycheck (worked one day of my vacation) in which virtually no taxes were withheld -- because the assumption is that this will be my pay throughout the year, thus I'll pay no taxes. I just had a $2000+ paycheck in which nearly half was withheld in taxes. This is far beyond my tax liability. My true liability is calculated when I file my taxes. Because of the excessive year-end withholdings -- as a PTer, typically 20% or more of my pay is earned in the final 6 weeks of the year -- I've adjusted my exemptions up to compensate. This means that if my tax liability were calculated from Jan-mid. Nov, I'd owe Uncle Sam a big chunk of change + probably a minor penalty. But toss on those extra six weeks, and it winds up being close to 0 (some years pay a little, some years receive a little). Many other UPSers have adjusted their exemptions up as well on the advice of their tax professional, but do not realize the reason why. Of course, some guys like getting thousands of dollars back. Not sure why you want to give Uncle Sam a 0% interest loan, though.
