Posted: 12/31/2012 1:01:49 PM EDT
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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... |
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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) |