Meanwhile Costco in Australia is pushing to have penalty rates abolished. They might be good by American standards but they can get fucked trying to erode Australian workers rights.
Trump promised no taxes on what we call overtime. Usually employers will pay 1.5x over 40hrs. However the taxes for those hours get deducted from your paycheck at your highest marginal tax rate. When you file your tax return this all balances out, but you don’t see much immediate gain from working OT and people will say “I don’t want to get bumped into the next tax bracket, so I don’t want a raise!” Even correcting a coworker one time, they responded, “you’ll learn when you’re older.”
My guess is that employers will stop paying the additional pay and tell the workers they’re making more this way. So basically a “tax cut” but employers will ultimately get the benefit of it. People in the U.S. don’t understand how taxes work and pay to file them even though it’s really easy for the majority of people. They even call the basic form a 1040-EZ.
Had to look it up myself, it’s their name for what Americans call “overtime”
like if you work over 40 hours in a week, any hours you work over 40 are paid out at 150% of your normal rate, some places do 200% for Sunday or holidays.
Meanwhile Costco in Australia is pushing to have penalty rates abolished. They might be good by American standards but they can get fucked trying to erode Australian workers rights.
Trump promised no taxes on what we call overtime. Usually employers will pay 1.5x over 40hrs. However the taxes for those hours get deducted from your paycheck at your highest marginal tax rate. When you file your tax return this all balances out, but you don’t see much immediate gain from working OT and people will say “I don’t want to get bumped into the next tax bracket, so I don’t want a raise!” Even correcting a coworker one time, they responded, “you’ll learn when you’re older.”
My guess is that employers will stop paying the additional pay and tell the workers they’re making more this way. So basically a “tax cut” but employers will ultimately get the benefit of it. People in the U.S. don’t understand how taxes work and pay to file them even though it’s really easy for the majority of people. They even call the basic form a 1040-EZ.
What’s a “penalty rates”?
Had to look it up myself, it’s their name for what Americans call “overtime”
like if you work over 40 hours in a week, any hours you work over 40 are paid out at 150% of your normal rate, some places do 200% for Sunday or holidays.
Found this article from a couple days ago.
https://www.actu.org.au/media-release/1-million-australian-workers-at-risk-of-penalty-rate-cuts-while-bossesare-promised-free-lunches/