Noticed a huge difference in my paycheck after I stopped picking up extra shifts for three months

2 comments

2 Comments

Hold on, wouldn't less overtime mean less pay though? Sounds like maybe you just dropped down a tax bracket or something.

abby_carr574d ago

Hate to be that person, but tax brackets don't work like that. You only pay the higher rate on the money you earn above the threshold, not your whole paycheck. So working more hours never makes you take home less overall, even if you jump a bracket. That's a common myth though, I get why people think it. The real reason paychecks shrink with less overtime is usually just less hours worked, not some tax trick.

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