why is Uncle Sam penalizing ME for what my employer decides to do? Why should I have to pay a SINGLE CENT more in taxes whether I get paid every two weeks, or every year? Is the government so dumb as to think that what I get paid on a bi-weekly check is actually what I make every week? in other words if I make $500 a week and I get a check for $1,000 bi-weekly, Does the taxman think I am being paid $1,000 a week?!!!
2006-09-02 13:56:21 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No, there are different withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semi-annual. and annual. If you are paid weekly and make $500 a week, you'll have the same amount taken out in two paychecks as the person earning the same per week but paid bi-weekly. You'll have a lot less taken out of your $1000 bi-weekly check than someone will with the same number of dependents who is making $1000 per week.
Think of it this way, because that's what the withholding charts do: figure what your total withholding for the year is, then divide by the number of pay periods - that's what they'll take out. Both the withholding for all the paydays of the year, and the final taxes, are the same total no matter how frequently you're paid.
2006-09-02 18:11:49 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
It doesn't matter how much they withhold--- if you file your taxes, the actual tax responsibility/liability is going to be the same. Tax responsibility is how much tax you owe and that's calculated on your annual salary no matter how often you get paid. So if your tax liability is for example $5000/year, and you get 26 bi-weekly paychecks with $200 in taxes withheld in each one, you pay $5200 by the end of the year and you get a $200 refund. If you get 24 semi-monthly paychecks, though, you've only paid $4800 by the end of the year and now you OWE $200.
If you have the right number of withholding allowances, though, the variance in taxes withheld over the course of a year shouldn't be very much in the first place. So your refund (or tax bill) is $16 more on bi-weekly checks than semi-monthly. It's not that big a deal, especially since everything gets evened out at tax time.
2006-09-02 14:42:30 · answer #2 · answered by dcgirl 7 · 0⤊ 1⤋
I work for a CPA firm and can ensure you that you are subject to the same tax wheter you are paid daily, weekly, monthly, or yearly. Your FICA taxes are based on a percentage of your income.
Uncle Sam isn't taking advantage of you. The amount of federal income taxes you pay are based on your income for the year. So even if you have too much withheld throughout the year, you will get it back on your return.
Unless your employer has screwed up its payroll, it doesnt matter the frequency of your payroll.
2006-09-02 16:05:15 · answer #3 · answered by r s 1 · 0⤊ 0⤋
You only have higher deductions because you appear to make more money at the time. But at the end of the year, you pay tax on what you earned, not how it was paid to you. So you would pay the same tax whether you were paid weekly, bi-weekly, or monthly.
2006-09-02 15:05:35 · answer #4 · answered by misslabeled 7 · 0⤊ 2⤋
It's true, we are taxed more getting paid bi-weekly, rather than weekly. I believe the tax bracket is the same, but you will pay more taxes on a $1,000 check than you would on a $500 check. It totally sucks.
2006-09-02 14:00:35 · answer #5 · answered by loveblue 5 · 0⤊ 1⤋
We should send all our jobs to China where the people get $2.50 an hour for labor and then we bail the company out because some Communist was elected as President then and now! Obama is already guilty of 5 counts of treason and refused to address them or the officer that brought these charges. Bill Clinton also committed treason and was never charged! He gave our missile guidance systems to China. One must wake up. Giving things to the Chinese Government is not supporting the Chinese people! The people know what it is like and it looks like ignorant Americans will soon find out that same reality. The Chinese people are not the Chinese Government. The government there loved Bill Clinton and loves Obama. The people there want Obama dead!!! Earl
2016-03-27 04:50:50 · answer #6 · answered by ? 4 · 0⤊ 0⤋
It all works out the same at the end of year.
2006-09-03 12:22:49 · answer #7 · answered by linluv2001 2 · 0⤊ 0⤋
Even if you pay more taxes on biweekly paychecks, it should all even out at tax time and you should get more money back.
I know. Not much of a consolation.
2006-09-02 14:08:16 · answer #8 · answered by Courtney 2 · 0⤊ 1⤋
No, it isn't. You will have the same total amount of taxes deducted by year's end.
2006-09-02 13:59:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋