|
One of Ronald Regan's first executive orders was to cut the overtime federal withholding tax for hourly workers so it was no greater than their straight time rate.
It used to be, if you worked overtime, your federal withholding was at a higher rate than your straight 40 - and you didn't get back the additional at tax time, regardless of deductions. You effectively were penalized for working o.t..
He reached out to the clock punchers and gave them a bone, and a greater incentive to increase productivity.
|