ST Alpha - "So my raise went into effect in this paycheck. Plus catch-up for the last two checks (raise was retroactive). But...taxes seem off." (Reading a Post)

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So my raise went into effect in this paycheck. Plus catch-up for the last two checks (raise was retroactive). But...taxes seem off.

Posted by ty97 Oct 17 '17, 15:07

The % withholding for Federal, state, and city income tax in this check is a higher % than the last paycheck. I understand this is an anomaly paycheck with extra retroactive catch-up pay in it, so obviously more $$$ will be withheld but confused why a higher % is being withheld.

Will be interesting to see next paycheck if % reverts to a normal of if this new % withholding sticks. No biggie, it all evens out in the end, but just doesn't make much sense to me.

Responses:

So bottom line is that I'll get a bit more back at tax time because of this. Thanks folks for the help! -- nm - ty97 Oct 17, 15:33 5
- Good luck with that. -- nm - Spawndroid Oct 17, 15:39 4
  - But really I will! Because they over-withheld (as required). Side not: I'm probably submitting my taxes on 4/14 next year. - ty97 Oct 17, 15:41 3
    - I submitted mine on Friday! -- nm - Spawn Oct 17, 16:38
    - Has your data been breached? IRS recommends filing ASAP* to prevent identity thieves from filing with your info. Filing an amended later could be - Covington Oct 17, 16:16
    - I hate that capital gains aren't reported until December and I can't estimate taxes before then. -- nm - Meg Oct 17, 15:45
They are screwing you!! Go to accounting and demand your cash! -- nm* - decline Oct 17, 15:29
Assuming you're biweekly, and this was on a single pay, what Meg says may be the issue. - zunk xometimes Oct 17, 15:28 2
- Not bi-weekly but very close. Paid twice per month, 24 paychecks per year -- nm - ty97 Oct 17, 15:30 1
  - Semi-monthly. Still guessing it's the same issue, tax frequency. Sometimes when there is extra pay they will use the bonus freq which is 25% of taxabl -- nm - zunk xometimes Oct 17, 15:48
It's treated the same as a bonus and withheld at the highest rate for Fed purposes. - spamlet Oct 17, 15:15 3
- Guess that's what I was thinking of. Used to have to try and explain it when I was doing payroll. -- nm - Meg Oct 17, 15:22
- I thought this was generally the case with bonuses, but in my most recent experience it was not. -- nm* - znufrii Oct 17, 15:19
- Wha? -- nm - ty97 Oct 17, 15:15
That happens with additional amounts. It's taxed as if you get that much every pay - higher tax bracket. -- nm - Meg Oct 17, 15:11 2
- I did the math (maybe I did it wrong)? Even with all of this incremental pay at my marginal rate, they are *still* withholding more -- nm - ty97 Oct 17, 15:13 1
  - Someone's gotta fuel your G6. -- nm - Max Oct 17, 15:14
If you multiply the gross by the number of pay periods in a year would that total be in a higher bracket? -- nm - Covington Oct 17, 15:11 1
- Nope, I'm between brackets, both for gross pay and for AGI (federally at least) -- nm* - ty97 Oct 17, 15:12
you need to track this on VisiCalc -- nm - crash davis Oct 17, 15:11
Your percentage withheld will always go up because the marginal rate (tax on the next dollar earned) is always higher than your average rate - znufrii Oct 17, 15:10

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So my raise went into effect in this paycheck. Plus catch-up for the last two checks (raise was retroactive). But...taxes seem off.

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