Why does my Federal tax percentage fluctuate?

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SlaveII

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I am in the 25% tax bracket and I have a job that in addition to regular salary I get overtime, and sometimes tuition reimbursement which gets taxes after I pass the 5,250 threshold.
I’m looking at the percentage I pay in Federal, MED, and SS versus my Fed Taxable gross and I notice that each pay period it fluctuates. (I do notice that my state taxes stays constant.)
So for example one period I paid tax % for Fed, Med and SS, of 13.99%, 1.57% and 4.55% (total 20.10%) and another period I pay 15.20%, 1.56%, 4.51% (Total 21.27%)
Anyone know what is causing the difference?
 
jcole21 Wrote:
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> Because tax laws change?
These differences are on consecutive paychecks.
 
I believe the withholdings on any compensation beyond your annual salary are based on the highest marginal rate. I know the withholdings on my bonus (when I actually get one) are at a much higher rate than my regular salary.
 
higgmond Wrote:
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> I believe the withholdings on any compensation
> beyond your annual salary are based on the highest
> marginal rate. I know the withholdings on my
> bonus (when I actually get one) are at a much
> higher rate than my regular salary.
+1. If memory serves, they tax your bonus rate as if that was the amount you got on each of your paychecks, year-round, which vaults your tax rate into the stratosphere. I believe most of my bonus paychecks are hit with something like 40-50% withholding due to city, state, and federal in most years.
 
Well on paychecks where I had no bonus or tuition reimbursement, the Fed, MED, and SS did not add up to 25%. It was around 20% for most periods. Are these the 3 components that comprise the Federal tax bracket?
Also is tuition reimbursement taxes at the high level that a bonus would be taxed?
 
SlaveII Wrote:
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> Well on paychecks where I had no bonus or tuition
> reimbursement, the Fed, MED, and SS did not add up
> to 25%. It was around 20% for most periods. Are
> these the 3 components that comprise the Federal
> tax bracket?
25% is only the marginal rate. Not all of your income is taxed at this rate. Google “tax brackets” to understand how it works.
 
Oh I see. So a portion is taxed at 10% and 15% before it reaches 25%. kay.
 
SlaveII Wrote:
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> Oh I see. So a portion is taxed at 10% and 15%
> before it reaches 25%. kay.
You’re now 3/4 of the way to being a seasonal tax preparer for H&R Block.
 
higgmond Wrote:
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> SlaveII Wrote:
> ————————————————–
> —–
> > Oh I see. So a portion is taxed at 10% and 15%
> > before it reaches 25%. kay.
>
>
> You’re now 3/4 of the way to being a seasonal tax
> preparer for H&R Block.
Final 25%, get hired?
 
justin88 Wrote:
——————————————————-
> higgmond Wrote:
> ————————————————–
> —–
> > SlaveII Wrote:
> >
> ————————————————–
>
> > —–
> > > Oh I see. So a portion is taxed at 10% and
> 15%
> > > before it reaches 25%. kay.
> >
> >
> > You’re now 3/4 of the way to being a seasonal
> tax
> > preparer for H&R Block.
>
> Final 25%, get hired?
Deciding which check cashing place he wants to work next to for the next 2 months.
 
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