Are Overtime Hours Taxed Differently?
Hello, everybody, and welcome to this next legal video bulletin of the Ask Alan series. I’m Alan Crone and got an overtime question today. Are overtime hours taxed differently than straight time wages?
No they are not. Overtime hours are more. In other words, if you’re entitled to overtime, you receive your regular rate times one point five for every hour worked over 40 hours in a given workweek. But those wages are taxed just as by the same rate as your straight time wages. Now, when we collect wages for folks in lawsuits, sometimes people forget that Uncle Sam wants his cut of of your wages.
And so in a lawsuit, those are also taxed as wages as well. So if you if you have $10,000 in damages on a wage case, Uncle Sam is going to take his percentage, just as as if you earn them, when you when you should have earned them. Now there are some some strategies that we can use to to mitigate the amount of taxes that you will have to pay in a lawsuit setting, but brace yourself, you’re still going to have to pay taxes.
As my pastor would say, that’s a happy problem because if you’re paying taxes, that means you’re making money. So that’s that’s the good part of it.
So over time, wages are taxed just like normal wages. And I hope this information has been helpful if it has. Please share some social media. Let your friends know about it. Email this link to other folks. Let them spread the word about their about everybody’s rights as employees and entrepreneurs. Again, my name is Alan Crone. Thank you for watching, and I’m going to go get some justice.
Legal Video Bulletin Series: Are Overtime Hours Taxed Differently?
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