Did my employer s***w something up? (tax question)?

Question

In my regular paycheck, for the same amount of money, was 286.89. Broken down this was 336.00 money earned, 23.41 federal withheld, 20.83 social security, and 4.87 fica.

What I got for 32 hours of vacation, was 336.00 earned, 84.00 federal withheld, and the same numbers for SS and fica. Coming to a total of 226.30.

I was under the impression that vacation pay was counted just like regular pay? when I tried to talk to my boss about this, he got snotty with me and wasnt helpful at all.

was all this taken out correct? or is there a problem?

Thanks!

Answer 1

Supplemental wages are taxed at 25% of your gross pay.  Like ninasgrandma stated, your employer didn't understand the withholding rules.

Answer 2

There is no problem.  Your boss didn't understand the withholding rules.

Your vacation pay was classified as "supplemental pay."  Your employer can treat withholding the same as wages, or he can take out a flat percentage.  This is what happened to you.

Any excess will be refunded when you do your taxes.