tax question
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- pr2
usually i get paid in cash/checks and only at the end of the year get send w2, so when i say my rate is so-and-so i get paid that amount. Recently i started working for the company that subtracts taxes (which i found out only when i got my first few payments). What bothers me is that each a payment reflect a different percentage of the original rate:
On $1200 i got $775 (%64 of the original rate)
On $600 i got $454 (%76 of the original rate)Why? It was the same the only difference was that the $1200 was for 2 days while $600 was for one. ???
- pr20
what do u mean?
- digdre0
no reason to worry, obama cuts your taxes by 95%
- uhmd_rek
- That's not what he said. He said he would cut tax for 95% of Americans.iliketocreate
- no he said , for working familiesdigdre
- in the usdigdre
- didn't he?digdre
- No far from it, he will increase taxes, thats simple politics republicans lower Dem;s raise them.silentseven
- you suck ballsdigdre
- He's only increasing taxes for wealthy families. 150K and over.dirtydesign
- ninjasavant0
do they itemize the deductions?
- zarkonite0
if they pay per set periods of time, they have to extrapolate your salary to a yearly amount in order to define your tax bracket. So if one cheque was 1200 and the other 600 then they project 600$ x 26 pay periods = yearly tax bracket. Since that makes you look like you're making half of what you would if you were making 1200 x 26 then you're most likely to be taxed differently...
- akrokdesign0
On $1200 i got $775 (%64 of the original rate)
is actually is just slightly more then 33% tax. your in N.Y so there might be 35% or more.
- pr20
yes on $1200
fed 260
fica-ss 74
fica-med 17
res st 73on $600
fed 75
fica-ss 37
fica-med 9
res st 24
- acescence0
i think what zarkonite said is correct, but i think it will all even out at the end of the year when it comes time to file, as they will then know your total income for the year and what you pay or are owed will be calculated
- but i would just ask finance department for a definitive answeracescence
- skelly_b0
I would have a talk with there accounting department. As an independent contractor I would be pissed. For all they know you could be claiming a loss and owe no taxes at the end of the year. DO they do this with other vendors, I doubt it. Imagine if you handed an electrician his check with taxes taken out.
- acescence0
whether or not you're a freelancer, they're not treating you as a contractor, you're obviously on payroll, which actually may work out to your advantage...
if they took nothing out and you paid taxes on it as contractor income, you would pay an even higher tax rate. the employer pays an amount that never gets subtracted from your check which you will then be responsible for
- skelly_b0
Though an employer does pay half your federal taxes (not including FICA and state) it comes off the top. As a contractor you get to spend your money on your business then get taxed on what's left over.
- cashface0
Where's hedge when you need him
- akrokdesign0
i think thats the same thing, like when i got my bonus check...then they had took out tax etc.
- akrokdesign0
no matter, you still going to have to write stuff off or they still want more cash out of you.
- eegrek0
They are probably treating you like an employee. At the end of the year they've paid some income tax for you, which isn't a bad thing. Try to sort it out with them to get your full cash, but remember, it's tax that you have to pay anyways.... the %'s will work out and you'll owe more or get some back based on your yearly income when you file your taxes. That's how I'm understanding it.
- flashbender0
was one of those a bonus?
- pr20
No man, every single of the checks is wage. What i can't comprehend is:
On $1200 i got $775 (%64 of the original rate)
On $600 i got $454 (%76 of the original rate)
On $300 i get $220 (%73 of the original rate)So like getting paid very little ($300) takes away more money then when getting paid more ($600). None of it makes sense.
- matt310
are you on the staff or operating it through your own business? if you are not on staff they should take no tax.