California Nurses: How Much Overtime Tax Do You Pay?

shodobe · Jul 9, 2006

I am not sure if you can separate your regular vs OT in taxes. All of your 401 contributions are taken out first then you are taxed on what is left as a gross. For example my paycheck yesterday was around 4500 gross then almost 900 was taken out for my 401 then I was taxed on the balance. At one time many years ago I knew if I had more than 15 hours OT in a pay period I would pay much more tax than if I only put in less than 15 hours. I really don't know what it is now because my OT can vary from a few hours to alot. I work in the OR so my call can vary. I know if you work alot of OT it doesn't seem that you bring much home, so that is why I max myself out on my 401 contributions each year. The more I make a month gross the more goes into my 401 fund.

Sheri257 · Jul 9, 2006

I am not sure if you can separate your regular vs OT in taxes.

Actually, I think I found the answer on another thread. I always assumed OT tax rates were higher because everybody complains about how the taxes at a certain point end up eating 50 percent of their pay check. But, apparently, they are not. They take that extra pay and assume that's how much you'll be making for the entire year (even if you're not) which bumps you up to a higher tax bracket for that month or whatever. However, if your overall pay is actually in a lower tax bracket for the entire year, then you can get some of those taxes back with a refund.

:typing

fergus51 · Jul 9, 2006

You should know though that if this is something you just do occassionally, a lot of hospitals will let you change your withholdings for one paycheck. I worked a bunch of OT around Xmas the year before last and just changed my deductions from 1 (I'm single, no kids, no house) to 8. Then changed it back again after I got that check.

Sheri257 · Jul 9, 2006

You should know though that if this is something you just do occassionally, a lot of hospitals will let you change your withholdings for one paycheck. I worked a bunch of OT around Xmas the year before last and just changed my deductions from 1 (I'm single, no kids, no house) to 8. Then changed it back again after I got that check.

Ah ... good point. Thanks for the tip.

shodobe · Jul 11, 2006

fergus, I use to do that all the time in the past especially when I had particularly busy call time. Lots of OT translated into big bucks if I did this and made me feel I worked for my money and not for Uncle Sam!