Help me with my paycheck

[H'sMomma]

I work full time on a pediatric hospital unit (3 12-hour shifts per week). If we pick up OT we qualify for $50 per hour per diem pay for all hours over 40 for the week. I've been told not to pick up more than 1 extra shift per week or it will almost all go to taxes. Some people say they get it back at the end of the year and others don't comment on that aspect of it at all. I would think that working more is better than not working more but I don't want to work a bunch of extra if there is a tax loop hole that doesn't make it worth it. Anyone have insight to this?

[NICU Guy, BSN, RN]

The employer-paid payroll tax wasn't deducted from the employee's check. The employee-paid payroll tax is the 6.2% Social Security and 1.45% Medicare tax.

I understand that my 6% Roth contribution is a good thing. I just don't like not seeing that money for decades.

I guess I have more financial discipline than most Americans, but I would rather not have any taxes taken out of my check and write the governments (IRS, state, county, local) a check on April 15th. That way I make the interest for the year instead of the governments. Unfortunately, they don't like that idea.

[Guest219794]

It is always better to make more money.

Anybody who is concerned about being in a higher tax bracket is kind of missing the point. I would love to be in a higher tax bracket.

And there is a big difference between taxes and withholding. They shouldn't be used interchangeably.

[Anonymous865]

The employer-paid payroll tax wasn't deducted from the employee's check. The employee-paid payroll tax is the 6.2% Social Security and 1.45% Medicare tax.

I understand that my 6% Roth contribution is a good thing. I just don't like not seeing that money for decades.

I guess I have more financial discipline than most Americans, but I would rather not have any taxes taken out of my check and write the governments (IRS, state, county, local) a check on April 15th. That way I make the interest for the year instead of the governments. Unfortunately, they don't like that idea.

I don't like over paying my taxes during the year even if I get it back when I file my taxes either.

If you work a lot of overtime, you can fix that by adjusting the allowances on your W4 so that your employer takes out less taxes. You will need to be careful not to under pay your taxes too much, or you will owe a penalty at tax time.