Is my employer screwing me here?

Nurses General Nursing

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Hello everyone,

I have worked at the same facility since August of last year in the capacity of a tech (pca III) while in school. I recently became licensed as an RN and went straight to work in that same facility.

Last pay period, I worked 1 week as a tech, had the weekend off, then came back on Monday as an RN and did my 40. When I got my check, ALL of it was at the tech rate. Went to HR for a resolution, was told that corporate needs to approve my new wage and it may take up to 3 pay periods (6wks.).

Now here's the funny part--the recruiter was all excited when she told me this--*BUT* you'll get it all (what they owe me--hours worked x diff between old and new wage) in a LUMP SUM!

Oh sure lady, that may sound real nice to every other 22 year old guy getting a nice raise, but NO. I am going to get SLAYED on the taxes accrued on that check.

I feel like my wage should have been changed and begun accruing at hour ONE of my work as an RN and should have been so reflected on my last check.

What to do? Thinking about labor board, corporate compliance, etc. I am ****** and I would hate to have to go bench press everyone on mahogany row to get my money. Trying to keep my cool and my job.

TS :devil:

Wezzie is correct.

your tax liability is what it is, they won't take anymore than they would have otherwise.

However, if they fail to deliver on their commitment of "up to 3 pay periods" (which by the way sounds like someone dropped the ball on that one) then you can take a more aggressive approach.

congrats and best of luck to you :)

Actually, this is not exactly true. While it doesn't make a difference come the end of the year, when you reach a certain level of pay within your pay period, you jump a tax bracket and taxes are withheld at a higher rate on that paycheck. A previous employer lumped my PTO pay in with my regular paycheck when I left that job and it cost me several hundred extra dollars for that pay period. Having said that, you WILL get it back when you file your taxes, assuming that you get a return. If you don't qualify for a return, you will have less to pay when you file.

As for paying you CNA wages while you are working as a GN/RN, I don't think that's legal if they don't make it retro and give you backpay. If this turns out to be the case, then check with the Wage and Hour Division of the Department of Labor. http://www.dol.gov/whd/index.htm

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Specializes in Mental Health.
Are you two sure of this? I'm new at everything still--I'm 22. Tax withholding on a lump sum isn't going to be > than the taxes on a few, smaller checks?

Wezzie, thanks :) I'm proud to be a part of the field. :up:

Everyone who has chimed in, thanks a lot. You guys are great.

TS

I am absolutely 100% positively positive.. :D .. Don't sweat it.. I've been paying taxes long enough to know. Lump sums make no difference.. Taxes are based on yearly income.. only be concerned if they don't do what they said they were going to.

Quite frankly, I'm surprised and dismayed at some of the other comments and "advice" you got here.. Raise hell and refuse to go to work? Change your withholding? You don't have to do anything besides enjoy your new job and new pay and a big check of pro-rated back pay! :up:

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Actually, this is not exactly true. While it doesn't make a difference come the end of the year, when you reach a certain level of pay within your pay period, you jump a tax bracket and taxes are withheld at a higher rate on that paycheck. A previous employer lumped my PTO pay in with my regular paycheck when I left that job and it cost me several hundred extra dollars for that pay period. Having said that, you WILL get it back when you file your taxes, assuming that you get a return. If you don't qualify for a return, you will have less to pay when you file.

you only jump the tax bracket if you receive "extra" income (i.e. vacation time, bonus, raise (promotion not switching positions), etc) OP won't be getting any of these, as he has changed jobs (within same co)

PTO is taxed higher (don't know the technicalities why) but it is.

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Stearnsy,

yes i am absolutely sure.

Keep in mind that you will see a higher amount taken out for withholdings, however, it's due to them being compounded over 6+ pay periods (hopefully less)

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Specializes in Emergency & Trauma/Adult ICU.
I am absolutely 100% positively positive.. :D .. Don't sweat it.. I've been paying taxes long enough to know. Lump sums make no difference.. Taxes are based on yearly income.. only be concerned if they don't do what they said they were going to.

Not quite.

Former payroll clerk here - in my life before nursing.

Without getting too deep into the byzantine illogic that drives US federal income taxes ... payroll taxes are formulated in such a way that assumes that the amount being paid right now, in any given pay period, is what you will continue to get each pay period for the year. So larger amounts or lump sums paid out at certain times (bonuses, back pay, etc.) can indeed be taxed at higher rates (for that paycheck) if that amount, if annualized, would result in a jump in tax bracket.

My spouse arranges for quarterly bonuses to be spread out over more than one paycheck to avoid just this situation.

Yes, it all evens out in the end when you file taxes for the year. But in the meantime your money is in someone else's pocket, and that is always ultimately a losing proposition for you.

Quite frankly, I'm surprised and dismayed at some of the other comments and "advice" you got here.. Raise hell and refuse to go to work? Change your withholding? You don't have to do anything besides enjoy your new job and new pay and a big check of pro-rated back pay! :up:

Bottom line OP - yes, your employer is screwing you. Probably not intentionally, but there is no reason it should take 3 weeks after an employee starts a new position to adjust pay rates. I would absolutely ask for the difference to be cut as a separate check - immediately. And watch all your future paychecks very, very carefully -- this payroll system (and/or the human beings running it) don't appear to be the sharpest in the box.

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you only jump the tax bracket if you receive "extra" income (i.e. vacation time, bonus, raise (promotion not switching positions), etc) OP won't be getting any of these, as he has changed jobs (within same co)

PTO is taxed higher (don't know the technicalities why) but it is.

I still have to disagree. The PTO was just an example. I tend to work lots of OT and my pay is always taxed at a higher rate when I reach a given level. It's easy to check for anyone who works OT. Calculate the percentage of taxes when no OT is worked, then calculate again when lots of OT in one pay period is worked and I guarantee there will be a difference.

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I still have to disagree. The PTO was just an example. I tend to work lots of OT and my pay is always taxed at a higher rate when I reach a given level. It's easy to check for anyone who works OT. Calculate the percentage of taxes when no OT is worked, then calculate again when lots of OT in one pay period is worked and I guarantee there will be a difference.

absolutely, OT is added income.

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Not quite.

Former payroll clerk here - in my life before nursing.

Without getting too deep into the byzantine illogic that drives US federal income taxes ... payroll taxes are formulated in such a way that assumes that the amount being paid right now, in any given pay period, is what you will continue to get each pay period for the year. So larger amounts or lump sums paid out at certain times (bonuses, back pay, etc.) can indeed be taxed at higher rates (for that paycheck) if that amount, if annualized, would result in a jump in tax bracket.

Exactly what I was trying to convey, but you stated it better.

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absolutely, OT is added income.

Well, ok, but by your own definition the OP WILL be getting extra income if paid a lump sum for back wages....???

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Re: PTO being taxed at a higher rate - many times PTO (if paid in a lump sum) will be unconsidered "unearned income" which is taxed at 33.5 percent. The same as a bonus/lottery winnings would be. However, for those folks who take it as part of the actual work week it is usually considered "time worked" as far as taxes go and they don't see a difference in their check - is that confusing enough for you : ) If paid back wages or OT and you have to pay a higher rate due to being thrown into a higher tax bracket for that period, you will get it back at the end of the year when you file at your "real" tax rate.

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In the end, the taxes you pay on whatever money is going to be based on your total for the year. So it doesn't matter if they pay you now, or 3 weeks from now in a lump sum, in the END you'll pay the same amount.

When you get a lump sum, or work a bunch of overtime, the taxes are calculated on that check as if you made that much every week. So that week, they'll be higher. If you don't make that much every week, you'll get it back when you file on April 15.

If you want to avoid that situation, then the week your lump sum is coming, change your W-2 for the week so that they take out less. (Add a dependant or something.)

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In the end, the taxes you pay on whatever money is going to be based on your total for the year. So it doesn't matter if they pay you now, or 3 weeks from now in a lump sum, in the END you'll pay the same amount.

When you get a lump sum, or work a bunch of overtime, the taxes are calculated on that check as if you made that much every week. So that week, they'll be higher. If you don't make that much every week, you'll get it back when you file on April 15.

If you want to avoid that situation, then the week your lump sum is coming, change your W-2 for the week so that they take out less. (Add a dependant or something.)

Philosophically speaking, you are correct. But when it's a difference of a few hundred dollars (or less in some cases) and you need the money now, it matters.

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