When Taxing Is Taxing
(We have a new employee to the store, who transferred from another store but has spent two years with the company.)
Employee: “Hey, I think they are holding to much money out of my check.”
Me: “Do you know what you have as withholdings? Like, your federal and state taxes?”
Employee: “No. Shouldn’t the tax rate be 8%?”
Me: “No, that is the sales tax rate, not the federal and state tax, and how long have you worked for us?”
Employee: “Two years. Did they change it from 8%?”
Me: “No. You should have federal, state, FICA, insurance, etc. coming out of your check. I am quite sure it is closer to 40% of your check being gone.”
Employee: “So how do I get it to 8%?”
Me: “Call the president of the USA, and tell him.”