When is over-time not worth the stay?

Question

This is for the business heads out there. I am coming up on fifth teen hours in over time (time and a half). Of course, this means more money in my pocket, but at what point/hour does it become less worthy due to excessive taxing by the IRS/State/Local Government?

Answer 1

money is money

Answer 2

In Canada, it depends on your annual salary. It will always be financially viable to work overtime.

However, there is a social and health cost as well. I would rather spend my spare time with family and friends than making some extra money unless the money is specifically needed.
People should not have to work overtime to "make ends meet." It's time to get a new job with more pay when that happens. Families are losing the battle. Both parents work most often now. I'd rather be a little poor than sacrifice time with my loved ones. I suppose it matters what is important to you.

Answer 3

When it puts you into the next tax bracket. I honestly don't know the break down regarding tax brackets, but I believe 28% is the norm, then it moves up depending on how much money you make. Go to the IRS web site and I bet they have a break down on the percentages or type tax brackets into your search engine.

Answer 4

It NEVER becomes 'less worthy', since there is no tax rate of 100% of what you earn. The HIGHEST income tax bracket for federal income tax is 35%, and I'm guessing you ain't there. Even if you WERE at that level, you would still take home 65 cents of every dollar of overtime, less your FICA and state income taxes.

Answer 5

Never. Your tax % will decrease but your net pay will keep going up with the number of hours you work. Besides, in some careers, it is expected to work the hours in order to succeed in the job. Especially in the early part of your career. Think of it as an investment in your career.