Working Overtime Is More Taxing Than You Think

Source: Working Overtime Is More Taxing Than You Think

 

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Here is an excerpt from the article (click source link above for actual article) outlining an example of a $20 hour worker working an extra 8 hours…
“The Government’s Take…
Overtime Pay $240.00
Federal Income Tax $63.20
State Income Tax $14.40
Employee-Paid Payroll Tax $18.40
Total Employee Taxes $96.00
Employer Payroll Tax $18.40
Worker’s Take-Home Pay $144.00
Government’s Take 114.40
The actual hourly take-home pay for giving up her Saturday is not $30 per hour, it’s closer to $18 an hour. Or to put it another way, of the eight hours she works on Saturday, three and a half go to paying taxes.”

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