Comair updates?
07-19-2011, 05:19 PM
Gets Weekends Off
Joined APC: Jul 2008
Posts: 425
http://www.irs.gov/pub/irs-pdf/p15.pdf
Page 15, paragraph 7.1 a&b.
Ultimately it doesn't matter what the supplemental witholding rate is. At the end of the year, income from an employer is all the same, and if the supplemental rate witheld is above the employee's marginal tax rate, the excess amount deducted will be refunded. If the supplemental rate witheld is lower than the employee's marginal tax rate, the employee will owe money on April 15th.
If one is presently employed elsewhere, or will be shortly after separation from Comair and they find the supplemental income witholding rate was higher than their marginal tax rate will be for the year, they can adjust the number of exemptions claimed on their W-4 to balance things without having to wait until April 15th to recover excess taxes taken.
Page 15, paragraph 7.1 a&b.
Ultimately it doesn't matter what the supplemental witholding rate is. At the end of the year, income from an employer is all the same, and if the supplemental rate witheld is above the employee's marginal tax rate, the excess amount deducted will be refunded. If the supplemental rate witheld is lower than the employee's marginal tax rate, the employee will owe money on April 15th.
If one is presently employed elsewhere, or will be shortly after separation from Comair and they find the supplemental income witholding rate was higher than their marginal tax rate will be for the year, they can adjust the number of exemptions claimed on their W-4 to balance things without having to wait until April 15th to recover excess taxes taken.
07-19-2011, 06:55 PM
Gets Weekends Off
Joined APC: Sep 2007
Position: Aeroplanes
Posts: 1,163
Originally Posted by irrelevant
http://www.irs.gov/pub/irs-pdf/p15.pdf
Page 15, paragraph 7.1 a&b.
Ultimately it doesn't matter what the supplemental witholding rate is. At the end of the year, income from an employer is all the same, and if the supplemental rate witheld is above the employee's marginal tax rate, the excess amount deducted will be refunded. If the supplemental rate witheld is lower than the employee's marginal tax rate, the employee will owe money on April 15th.
If one is presently employed elsewhere, or will be shortly after separation from Comair and they find the supplemental income witholding rate was higher than their marginal tax rate will be for the year, they can adjust the number of exemptions claimed on their W-4 to balance things without having to wait until April 15th to recover excess taxes taken.
Page 15, paragraph 7.1 a&b.
Ultimately it doesn't matter what the supplemental witholding rate is. At the end of the year, income from an employer is all the same, and if the supplemental rate witheld is above the employee's marginal tax rate, the excess amount deducted will be refunded. If the supplemental rate witheld is lower than the employee's marginal tax rate, the employee will owe money on April 15th.
If one is presently employed elsewhere, or will be shortly after separation from Comair and they find the supplemental income witholding rate was higher than their marginal tax rate will be for the year, they can adjust the number of exemptions claimed on their W-4 to balance things without having to wait until April 15th to recover excess taxes taken.
Thank you for stating this, and including a reference. I have never understood why some people complain about "oh it's in a higher tax bracket so I'll make less money and my check will be lower." At the end of the year it all makes no difference. Income is income. It might be deducted at a little different rate, but in the end, it's all the same. If more-than-necessary is deducted, you'll get it on your tax return, which is kind of like a little bonus check anyway.
07-20-2011, 01:55 AM
Gets Weekends Off
Joined APC: Feb 2007
Position: 1st year pay for the 3rd time
Posts: 1,434
Originally Posted by RJtrashPilot
I left Comair recently, and I can confirm that the IRS taxes the snot out of your vacation payout to the tune of about 1/3. Those crooks turned a $3,500 payout into about $2,300.
07-20-2011, 03:54 AM
Gets Weekends Off
Joined APC: Jun 2011
Posts: 1,152
Originally Posted by cessna157
Thank you for stating this, and including a reference. I have never understood why some people complain about "oh it's in a higher tax bracket so I'll make less money and my check will be lower." At the end of the year it all makes no difference. Income is income. It might be deducted at a little different rate, but in the end, it's all the same. If more-than-necessary is deducted, you'll get it on your tax return, which is kind of like a little bonus check anyway.
07-20-2011, 08:34 AM
I have shiny jet syndrome
Joined APC: Jan 2008
Position: ELACS, FACs and SECs. Who doesn't love 'em?
Posts: 984
Originally Posted by cessna157
Thank you for stating this, and including a reference. I have never understood why some people complain about "oh it's in a higher tax bracket so I'll make less money and my check will be lower." At the end of the year it all makes no difference. Income is income. It might be deducted at a little different rate, but in the end, it's all the same. If more-than-necessary is deducted, you'll get it on your tax return, which is kind of like a little bonus check anyway.
Some people (like me) prefer to have their money now and not let the government have it. But to each his own, I suppose.
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