Ziggy
Well-Known Member
Right.
So when you work overtime, I have to pause there for a second, ok, what is considered "overtime" ?
So when I used to work a 40 hour work week, which was NORMAL,
then anything over that 40 hours was overtime.
Overtime was paid time and a half.
At the end of the week your paystub would be 40 hours at this pay
and overtime at this pay.
Your employer is still going to combine that total time and give you one paycheck at the end of the week.
Out of that total you pay taxes.
Now the question is, does the employer withhold those taxes on overtime or,
does the employee have to determine the tax on the overtime and take a deduction or write off the excess tax that was paid on the overtime?
And do they only get to do this at tax filing time usually in April?
I don't know.
All I know is if you're worth it I give you extra, if you are not, you be lucky if I pay you at all.
Then you also get to write off any interest on the loan you may have taken out on a new car.
Then there is being able to write off depreciation the year you buy a (let's say) farm tractor, instead of having to spread that depreciation over a 5 year period which is the common amount of time, You get to take it out year one.
Usually by then your looking for a trade in anyways.
So if you take it in the front end you can use that savings to do a lot of things. Expand your business, hire new labor, buy new equipment, etc.
All of these have already been signed into law last year in the Big Beautiful Bill.
Some people made out good this year, others may have to wait until next year, and then you have those who pay by Quarterly.
I'm not a payroll or tax expert but they aren't foreign to me as I used to do all the bookeeping both for my dad's business and for the Truck my husband and I owned.
But it sounds to me that someone who is looking to keep more money in their own pocket,
whether by tip or overtime or depreciation or purchasing a new vehicle,
I would say that sounds pretty good.
Hugs
