• JasonDJ@lemmy.zip
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    1 day ago

    This is what I don’t understand…taxes are on net income. IRS treats a dollar from overtime the same as it treats a dollar from wages.

    People see a higher percentage taken out on paychecks because their payment processor is dumb and it assumes that your wages this week will be representative of all weeks for the remainder of the year, in which case you haven’t been paying enough taxes so far this year, so it’s trying to make it up.