PDA

View Full Version : How much is back pay supposed to be taxed?


irax
04-05-2012, 02:20 PM
5 Months ago was my 1 year at my job and I was supposed to get a review and a raise. Long story short I just got my raise with back pay. But for some reason almost all of the back pay just went into taxes. Is the tax rate different for back pay or something?

slideslidegnarslide
04-05-2012, 02:24 PM
Pay raise may have put you in a new tax braket

Phlip
04-05-2012, 02:30 PM
My understanding is that one check will be taxed as if it is one pay period, therefore a prorated portion of an annual salary. If that prorated amount throws you into another tax bracket, then you will be taxed accordingly.
Now, I do not know that this applies to backpay, I think the most practical application is to those who work a TON of overtime (which I found out the hard way on more than 3 occasions).

fyneyoungstunna
04-05-2012, 11:33 PM
crazy, I was just gonna make a thread on this tomorrow.
Same situation, except my back pay is two years worth, at a 15 cent raise for each client that signs up after seeing me, a 50 cent raise every six months, and a dollar every year. On top of that Im paid per client not hr....
This is gonna be interesting to find the answer to. Ill be kinda butthurt If all of my backpay gets taken by uncle sam.

irax
04-10-2012, 02:09 PM
So it turn out they had accidentally taken extra taxes out and sent me a check with the refunded amount.