Techempage (techempage) wrote,
Techempage
techempage

Taxes

I like everyone else, am not a big fan of taxes. But it always boggles me the total lack of understanding of how they work.

There was an employee, who came to me in the restaurant the other night. This guy does a lot of different things. He cooks, bartends, waits tables, and shift leads. He told me, unless we absolutely needed him to, he didn't want to wait tables anymore. When I asked him why, he said because he looses money doing it. After talking to him a while about it, it basically came down to the fact that when he waits tables, because of the tips he claims his check goes down due to the taxes. I tried to explain to him, that he wasn't losing money, he was making that money in tips, it just wasn't on his paycheck. He wouldn't be convinced of it.

Then, when I was mentioning to one of the managers about my manditory overtime. He basically told me the same thing, that when you work overtime, you end up losing money due to what you pay in taxes on it. I didn't feel like explaining. There is no marginal tax rate that is 100%. Now if you are on the border of a tax bracket, and because of the overtime you get bumped into the next tax bracket, they might withold more, but if you didn't really make enough for that tax bracket, the goverment's going to give it back at the end of the year. (I know that that is an interest free loan, but there's not a whole lot you can do about that under the current system.)

I'm trying to figure out how to set up a spreadsheet handle my taxes more efficiently; whereas, I'm seeing people basically turning down money because of them. I know the current code is confusing, but come on!
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