Do you remember the first time you saw a wage in your bank account? From this moment you could be economically independent and you could treat yourself, maybe buying some whim from now and then. What a marvelous feeling, right? However, if you are a rookie on this you may be disappointed when you see some deductions on your wage. Here, you will know more about your conditions and what the government offers.
Be careful with the method of payment!
You should be informed about the right ways which your employer can pay you. They must pay you in a legal and formal way, that is, not in cash or gift cards. The only possible ways to receive your wage is by check, direct deposit. This is done so employees are not being played for a fool and they receive their real wage and it is registered, in case you get your wage wrong you have evidence of the amount you have been paid.
At first, you will be very excited about a gift card, but that is not the proper way to pay for your work, you would not be able to spend that money on whatever you want, but only on the specific store of the gift card. So, think twice before accepting your wage in a rare and illegal method.
Another relevant point about your wage is the fact that it cannot be conditional. That is, nobody can neither make you spend your wage on specific products, use your salary as a warning nor can your boss ask you for a ‘kick-back’, being asked to return your income. If something like this happens to you, do not give in.
Earning an extra money
Some workers decide to do overtime at work to save more money or to pay something, but you need to take into account that extra work must be also declared as your wage. It is so attractive to earn more money, although you will see a rise in your tax percentage.
Having in mind people’s need for doing overtime to be able to reduce debts or deal with personal situations, the government of the United States has come up with a new law called ‘Overtime Wages Tax Relief Act’. This law allows American workers to do overtime but not to pay federal taxes of the 20% of that overtime.
You could be one of the beneficiaries
Average income workers who need to do overtime for basic expenses could apply for this benefit. Nurses, policemen or warehouse workers are just some of the examples of jobs that normally require more than 40 hours of work. However, as every law and benefit, there are some specific points you should be aware of:
- If you declare your income with your partner or on your own could mean a different amount of deduction: up to $20,000 for couples and up to $10,000 for individuals.
- If your and your partner’s earning is over $200,000 or your individual earning is over $100,000; the benefit will be reduced.
This law will be applied from 2025 to 2029, so if you have a limited amount of time to benefit from this in case you belong to this worker category.
This shows how important it is to know our labour rights when we start working in a new place. We cannot permit any modifications in our wages if they are not legally registered, the right of free and clear payment must be applied to every worker. So, next time you start a new job, check out the conditions and be careful with your wages and the method of payment.