tax question 2424 Responses

Last post: 2 months, 2 weeks ago | Thread started: Aug 29, 08, 9:58 a.m.

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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. ???

  Aug 29, 08, 9:58 a.m. – Permalink

• ETM

  Tax brackets.

  • The more you make, the more you are taxed. Even if it's on the 1 cheque.– ETM

  

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  Dog-earAug 29, 08, 10:04 a.m. – Permalink

• pr2

  what do u mean?

  

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  Dog-earAug 29, 08, 10:04 a.m. – Permalink

• digdre

  no reason to worry, obama cuts your taxes by 95%

  • uhm– d_rek1/8

    That's not what he said. He said he would cut tax for 95% of Americans.– iliketocreate2/8

    no he said , for working families– digdre3/8

    in the us– digdre4/8

    didn't he?– digdre5/8

    No far from it, he will increase taxes, thats simple politics republicans lower Dem;s raise them.– silentseven6/8

    you suck balls– digdre7/8

    He's only increasing taxes for wealthy families. 150K and over.– dirtydesign8/8

  

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  Dog-earAug 29, 08, 10:05 a.m. – Permalink

• ninjasavant

  do they itemize the deductions?

  

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  Dog-earAug 29, 08, 10:05 a.m. – Permalink

• zarkonite

  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...

  • this really doesn't make sense when working as freelancer– pr21/2

    If you're a freelancer they shouldn't be taking taxes from you. You're an employee.– ETM2/2

  

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  Dog-earAug 29, 08, 10:07 a.m. – Permalink

• akrokdesign

  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.

  

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  Dog-earAug 29, 08, 10:08 a.m. – Permalink

• pr2

  yes on $1200
  fed 260
  fica-ss 74
  fica-med 17
  res st 73

  on $600
  fed 75
  fica-ss 37
  fica-med 9
  res st 24

  

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  Dog-earAug 29, 08, 10:08 a.m. – Permalink

• pr2

  so in other words from no on i should bill them one day at a time?

  • (since then i get more of the original percentage?)– pr21/2

    If you over paid, you'll get it back at tax time. Look at the big picture.– ETM2/2

  

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  Dog-earAug 29, 08, 10:09 a.m. – Permalink

• acescence

  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 answer– acescence

  

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  Dog-earAug 29, 08, 10:11 a.m. – Permalink

• skelly_b

  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.

  • Agreed, but by law (here in B.C.) if you work on-site for xx amount of time you are considered employee– eegrek1/2

    hence the reason taxes have to come off, even if you are a freelancer on-site.– eegrek2/2

  

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  Dog-earAug 29, 08, 10:14 a.m. – Permalink

• acescence

  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

  

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  Dog-earAug 29, 08, 10:18 a.m. – Permalink

• skelly_b

  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.

  • u saying i should just get full check?– pr21/2

    If a freelancer, yes. Taxes should be your responsibility. What does your employment contract say?– ETM2/2

  

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  Dog-earAug 29, 08, 10:30 a.m. – Permalink

• cashface

  Where's hedge when you need him

  • r.i.p.– akrokdesign

  

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  Dog-earAug 29, 08, 10:34 a.m. – Permalink

• pr2

  none of this makes sense. now i look at a cancellation fee check that was suppose to be for $300 and is $220 (%73 of the original fee)???

  Those percentages are all over the place.

  • That's the different TAX brackets for the different payments! Its seen as 2 different wages.– ETM

  

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  Dog-earAug 29, 08, 11:02 a.m. – Permalink

• akrokdesign

  i think thats the same thing, like when i got my bonus check...then they had took out tax etc.

  

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  Dog-earAug 29, 08, 1:37 p.m. – Permalink

• akrokdesign

  no matter, you still going to have to write stuff off or they still want more cash out of you.

  

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  Dog-earAug 29, 08, 1:41 p.m. – Permalink

• eegrek

  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.

  

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  Dog-earAug 29, 08, 1:52 p.m. – Permalink

• flashbender

  was one of those a bonus?

  

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  Dog-earAug 29, 08, 3:03 p.m. – Permalink

• pr2

  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.

  • that is weird. it should remain constant– flashbender

  

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  Dog-earAug 29, 08, 3:45 p.m. – Permalink

• matt31

  are you on the staff or operating it through your own business? if you are not on staff they should take no tax.

  

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  Dog-earAug 29, 08, 3:52 p.m. – Permalink