@[email protected] points out that the OP is mistaken.
Removing tax on overtime and tips are included in the bill.
https://www.cbsnews.com/amp/news/trump-tax-cuts-overtime-social-security-senior-deduction/
But they’re pulling the same bullshit as last time. Permanent for businesses, temporary for us.
Does it mandate taxes on hoarded billions of wealth? No? Then it’s a bad tax bill.
It’s a bad bill but this guy is wrong. Removing tax on overtime and tips are included in the bill.
https://www.cbsnews.com/amp/news/trump-tax-cuts-overtime-social-security-senior-deduction/
But they’re pulling the same bullshit as last time. Permanent for businesses, temporary for us.
Does it classify overtime as “more than 160 hours worked in a 4 week period”, because that’s the original language I saw. Can still work you to death and not pay extra.
No doubt the devil is in the details but overtime and tips are certainly addressed in the bill in some capacity.
Full time in the US is 40h though so 160h every 4 weeks is full time work and any overtime would put you above 160h over 4 weeks… Outside of that then sure your employer should pay you overtime on a daily/weekly basis and not over 4 weeks, but if it’s only about taxes then whatever, it doesn’t make sense to not pay taxes on it anyway.
Right, but they can abuse you for short stints of time. Compare that to something like the laws when I worked in California. Anything over 8 hours in a day was overtime, anything over 12 hours in a day was double time, and anything over 40 hours in a week was overtime. This means if they overwork you even in just one day, you’re getting paid extra. With something being worded 160h in 4 weeks they can overwork you for a big event and then give you a bunch of time off and never have to pay you extra.
mm businesses where continuity is really important might love this. Hire enough people so that everyone works 12hr shifts but don’t schedule anyone enough days a month to trigger additional costs
Which is why I said it only makes sense if it’s for the taxes thing, for everything else you should be paid overtime when you’re working more than you’re supposed to, there’s no questions there.
I’m not sure I understand. Why would that make sense for taxes? If it’s overtime, it should be overtime…
If they want to exempt overtime from taxes they can manage it however they want since it doesn’t make sense to exempt overtime from taxes in the first place.
Now as for what counts as overtime when we’re talking about when you start getting paid more for the time you’re working? That’s whenever you’re working more than you’re supposed to.
“Give you time off”, like just not scheduling you do you don’t get paid. Abuse for real!!
No, it’s avoiding paying overtime for when they had you work overtime… Here, I’ll be even more explicit for you. Imagine your company has an event and has you work 60 hours one week, but then only gives you 20 hours the next week. You worked 20 hours of overtime in the first week, but they then avoided paying you overtime by giving you less time the second week. Do you not see how averaging out the time over a longer period is in the interest of the company and not the worker?
So kind of like in Austria, but not as bad. The overtime cap is 70 hours (total, and does not get wiped each month) before you can start getting paid for each extra overtime hour. But the tax eats enough of it, that many people just exchange it for days off before they reach 70 hours. Or just work longer hours Mon-Thu and work shorter Fridays – of course, this doesn’t work for all job positions. I don’t think employers are legally allowed to force the workers to use up that overtime, and there is a legal daily limit, but how it works in my company, we just transfer those hours to another day instead, so people can still work over that limit regardless.
I realize now my comment could be taken both ways, but I agree with you. They’ll get around the overtime requirement by giving you “time off”, that you won’t be paid for.
So you suffer your 12 hours day, and then they just take you off the schedule for a day later, which also fucks your over.
Okay, yeah your comment wasn’t very clear.
From newsweek
The tax exemption for overtime pay, if enacted, would only apply to income taxes, and not payroll taxes, and would be subject to income restrictions. A work-eligible Social Security number would be required to claim the deduction.
So I’m very interest to see what the “restrictions” are.
Thanks, I edited the title and body!
I have no moral character and I must fall for it againThese memes are getting out of control and yet still fail to accurately portray just how ridiculously inept these people really are.
This one is pretty good though.
I’m worried that there’s an additional layer of meaning here that is too deep for me.
I’d be asking my employer to cut my pay to 0 and simply ‘tip’ me the same gross amount every month.
The leopards are going to become morbidly obese from this round of eating. Someone had better get them a bunch of “fat shots”, stat.
Oh, they don’t believe in getting shots.
I believe in their getting shot.
Not a meme
There, I commented it for you this time.
Annoying pedants hot and ready in your area!
I never understood how he could even promise to exempt overtime from taxes. Tips, I understand, but overtime is lumped in with your wages on your W2.
How would the IRS be able to tell your overtime wages apart from your regular pay?
There is a lot of room for abuse. Old salary $20/hour. New salary $8 + $12 overtime. For every “real hour” worked, you get 1 hour of “standy overtime pay”. Employer still gets to deduct $20/hour expense, you get taxed on just $8/hour pay? Or maybe it is $16/hour, with $4/hour tax free. This scheme can replace a raise. Employees could get screwed if the “overtime gift” gets cancelled later.
Which is baked into the tax plan. 3 years and the OT tax break goes away. 3 years for companies to skimp on actually raising pay to meet living costs. Then they’ll just blame the Dems if they win any seats or stay quiet if they retain majorities.
Your employer would declare it as such when they do payroll.
My pay slips have a separate line for regular pay and overtime pay at a different rate.
The IRS doesn’t care about your paystubs (unless you’re being audited). They only care about the W2, and there isn’t a box for “overtime wage” on it. It’s all lumped into the same box
So they will… add a box?
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.
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