I just recently started a new job in Oklahoma.
On my first pay check:
2.4% was taken out for Federal Tax.
7.7% was taken out for Social Security.
1.5% was taken out for State Tax.
Totaling 11.6% taken out of my pay check.
On my second pay check:
5.6% was taken out for Federal Tax.
7.7% was taken out for Social Security.
3.0% was taken out for State Tax.
Totaling 16.3% taken out of my pay check.
I did however earn $254.30 more on my second pay check than on my first due to some overtime.
But would this really make such a difference to take out 5% more out of my pay check?
2007-11-29 05:44:17 · 6 answers · asked by Joe S 1 in Business & Finance ➔ Taxes ➔ United States
Yes, it would.
Federal and state tax percentages is based on your gross pay amount. The larger your gross the higher the percentage of state and federal tax rates.
2007-11-29 05:53:34 · answer #1 · answered by Jan Luv 7 · 0⤊ 0⤋
Q. My boss says that the larger the paycheck the more percent of taxes get taken out, is that correct? A. Effectively yes, because the first few dollars to the first few hundred dollars (the amount depends on your filing status, pay period length, number of exemptions, etc.) are exempt. After that, it is a certain % of the next so many dollars, then another % of the next so many, etc. The idea is to ensure that taxes withheld over the year are approximately total taxes for the year (assuming no income from sources that do not withhold, such as investment income). Q. Why does the percent fluctuate between different pay checks? A. If the checks are for different amounts, then for reasons above. Otherwise, it may be a round-off issue.
2016-04-06 03:59:38 · answer #2 · answered by ? 4 · 0⤊ 0⤋
IRS Taxpayer Assitance Divion
800-829-1040
2007-11-29 05:52:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your tax withholding is based upon your W-4 filings. You didn't state your W-4 filing.
Read IRS Publication 15 and the similar publication for your state. Then you will be able to determine the correct amount of tax withholding.
It makes perfect sense that more taxes were withheld with a bigger paycheck.
2007-11-29 15:29:14 · answer #4 · answered by Steve 6 · 0⤊ 0⤋
You don't say how much your check is without the overtime, but yes it can make a major difference as to what's taken out if your check is considerably higher one time than another.
2007-11-29 06:16:59 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
you probably wen from the 10% federal tax bracket to the 15% bracket - there's your 5%
2007-11-29 06:14:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋