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Post by vpainter on Apr 5, 2014 22:21:06 GMT
arcie1001, Aramco has a PriceWaterhouseCoopers office here and they do our taxes each year.
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Post by pierce3215 on Apr 15, 2014 12:51:37 GMT
Revive,
Did you ever find out why we are being taxed both for the Hypo Tax and FIT Witholding? I read up alot on this last night and it seems as if it is double-dipping. The salary worksheet shows the Hypo Tax reducing the C&S allowance by $X, and then further down we are again being charged a federal income tax. Did you ever ask payroll about this?
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Post by vpainter on Apr 21, 2014 22:31:42 GMT
We get the foreign earned income exemption every year. We pay taxes on the remainder at the tax rate for the entire salary
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Post by bamaster on May 23, 2014 5:53:47 GMT
You pay taxes on the uplift, too? I thought that was tax protected.
And you still get to claim standard deductions, as well as other pre-tax deductions (ie 401k), yes?
I thought hypo tax *was* an estimated FIT withholding figure. My offer details hypo tax, but there's no mention of an additional FIT withholding. So I'm confused why new employees are seeing double withholdings.
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Post by vpainter on May 24, 2014 13:51:31 GMT
You get your tax free amount, once subtracted from your income, the remainder even though it is lower is taxed by % of what the full salary would have been taxed at.
Ex: So if your entire salary would be taxed at 39% and once you subtract your tax free amount - that amount would have been taxed at 18%, but it is not. That remainder is taxed at the 39% rate.
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Post by bamaster on May 24, 2014 17:06:50 GMT
Well, traditionally speaking, U.S. taxes are a little more complicated. My marginal tax rate today is 28%, meaning that's the rate on my last dollar earned. But my first dollar earned (well, all single status earners) is 10%... up to $8,925. $8,925 to $36,250 it is 15%. $36,250 to $87,850 is 25%. We don't pay the top tax rate on all our dollars earned. The rate is different based on how much we've earned. That's what we actually pay "effective tax rate". Just a point of clarification.  But my real question is why would our pay have both hypothetical tax AND federal income tax? I thought hypo was a projected "effective tax rate" deduction. Are all on U.S. payroll having hypo tax withholding and FIT withholding? |
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Post by vpainter on May 24, 2014 17:52:20 GMT
Except that the foreign income tax rate changed under George Bush. Now you will pay the higher rate of income tax percent on your lowered amount after the tax free dollars have been subtracted.
Yes, all U.S. employees have both Hypo tax and FIT withholding.
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Post by bamaster on May 25, 2014 2:20:24 GMT
I guess I don't understand hypo tax. Neither does revive and pierce3215. My verbal offer included hypo tax and I was told explicitly it was U.S. federal taxes.
I'm waiting on a written offer with hopefully better details. The community here is fantastic but it has created a lot of questions for me, too. :mrgreen:
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Post by bamaster on May 31, 2014 2:22:32 GMT
I received my written offer and yes, it includes hypothetical tax and Federal Income Tax Withholding. The former being much more than the latter. I did ask for clarification but I haven't received it yet.
I'm hoping to get a real answer before my modified offer is received.
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Post by bamaster on Jun 1, 2014 17:17:14 GMT
Ok, I think I cracked a part of the code.
The Federal Income Tax Withholding appears to be estimated withholding for the anticipated bonus (SAIP). My offer has the estimated payout listed and at my tax rate, it's matches. And it makes sense.
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Post by andyzou on Jan 14, 2022 21:27:03 GMT
Anyone knows how the "gross up" in the rewards and benefits summary work?
Thanks.
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