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AR15.COM
12/31/2012 1:01:49 PM EDT
My younger brother worked a ton of overtime last week and is worried that tax hikes involved with the fiscal cliff would apply to these wages.  He says the current pay period, to include last week, ends this Friday, Jan 4, 2013.  

From my extremely elementary understanding of the way income taxes work, the wages he earned prior to Jan 1, 2013 will still be taxed at the current rates, not the "over the cliff" rates.  Things like withholding and payroll tax are outside my knowledge, so what I'm asking is:

Will the fiscal cliff affect his paycheck for this current pay period (Dec 22, 2012 - Jan 4, 2013), namely the massive OT he earned Christmas week?

Thanks in advance...
12/31/2012 5:19:01 PM EDT
[#1]
free bump.. im curious as well..

Brian
12/31/2012 5:23:02 PM EDT
[#2]
I'm finding ways to make LESS money next year. Example - leave without pay. Never thought it would come to this. Seems so fucking backwards.

Hopefully he gets to keep a little over half of his OT pay.
1/1/2013 7:52:59 AM EDT
[#3]
If he is paid in 2013 even though the work was done in 2012, the whole pay will be taxed at whatever the rate is the date of the check.
1/1/2013 7:54:09 AM EDT
[#4]



Quoted:


I'm finding ways to make LESS money next year. Example - leave without pay. Never thought it would come to this. Seems so fucking backwards.





Watch out for this, it will force you to work longer before retirement. (If your company has a 20/25 year buyout plan)