Old 02-10-2019, 05:34 AM
  #29  
madhatter1
Senior Member
 
Join Date: Feb 2012
Posts: 701
Default

Not a fan of all of ol Pete's threads but I have to back him up on this thread. I hear it over and over. Most people just do not understand what they are really paying. What he said was If they had 5K withheld and got 2k back they paid 3k in tax for the year. Now they have 3k withheld based on new rates. End up owing 2k and get the other 1k back. Now upset they only got a 1k refund (of their own free loan $to govmint) but in reality they paid 1k less in taxes than last year. So in reality they 1k ahead but think they are 1k behind.

These are the same kind that don't want overtime because it kicks them up to the next withholding bracket and believe they make less by making more. Yes on this paycheck with 2 hours OT take home may actually be less but you get it back at the end of the year.

The way I pay my guys for on the road work they get windfall large paychecks sometimes. Even though I explain in advance they are going to have withholding on this as though they make the same amount 26 times a year they always are astonished at what is taken out compared to a normal payroll.

They are happy at tax time though and then at least one more person understands this.
madhatter1 is offline