Re: Back Pay? Paid less? Depends on how much back pay...
Author: BOB2
Date: 09-20-2022 - 09:08

Bob the Train Guy Wrote:
-------------------------------------------------------
> Depending on their individual income situation,
> that lump sum back pay may put them in a situation
> where they actually get paid pay less. Some might
> have a hard time around filing season, just to
> find out they owe a lot. Honestly, If it were to
> screw me, I would ask for the back pay to be put
> into something tax differed, like a 401K.

You can always put your hard earned income into a tax "deferred" into an appropriate IRA or 401K to avoid taxes. Why you could pay the taxes now and put it into a tax free IRA, for the future, too.

Marginal tax rates would require a back pay check of over $250,000, to put one into a 43% bracket for State and Federal taxes on amounts greater than that. Most folks would prablably still take the money left after taxes, though.

Most overpaid sleeping RR workers do not make over $250,000 a year, so very few should get abouve about 40% state, fed, Tier one and two, and medicare tax rate, on this extra one time payment.

RR Retirement Tier one is 6.9% and 1.45% for Medicare. RR Retirement Tier II takes a much bigger bite above $102,000 though (still way too high compared to what millionaires who earn on capital gains pay on the same income levels).

So, if you were to get to $250,000 in back pay, you'd be at an over a 50% tax rate, on the next dollar above that amount you earned.

This math is not really that hard, either.



Subject Written By Date/Time (PST)
  Pay Raise The Oracle 09-19-2022 - 10:49
  Re: Pay Raise Dr Zarkoff 09-19-2022 - 13:10
  Back Pay T 09-19-2022 - 14:09
  Re: Back Pay Bob the Train Guy 09-20-2022 - 08:20
  Re: Back Pay? Paid less? Depends on how much back pay... BOB2 09-20-2022 - 09:08
  Re: Back Pay? Paid less? Depends on how much back pay... Bob the Train Guy 09-20-2022 - 09:49
  Re: Back Pay Dr Zarkoff 09-20-2022 - 11:48
  Re: Back Pay The Oracle 09-21-2022 - 09:47
  Re: Back Pay Dr Zarkoff 09-21-2022 - 11:19
  Re: Back Pay Tom H 09-21-2022 - 16:15


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