Now that there are tax advantages for workers that earn overtime should people reconsider the careers they pursue? Anyone that works in a salaried position where the employees routinely put in more than 40 hours per week will be at a significant financial disadvantage. It also seems that the sectors of the workforce that offer an hourly wage are also the ones least likely to be replaced by AI. |
I’m a salaried fed but get paid overtime because of our union contract. I know police officers get a lot of OT. So do trades people and some healthcare professions. I can definitely see these becoming more popular paths. However I hope employers won’t use this as an opportunity to lower wages since they can now “pay” their employees more through no taxes. I just don’t trust the wealthy employer class to not twist this to their advantage and am fairly cynical. |
The OT wages are still taxed. People will get the money refunded when they file their taxes after the first of the year. |
If more people want to be OT qualified workers, there will be fewer hours for them overall thus negating the need for OT. |
I have 2 brothers. One is a 4th year cop making $98k but $150k with OT. The other is a union iron worker making $110k but $170k after OT.
It'll be a big difference for some people to have that extra refund too. |
It's capped at 12,500 per year. So the benefit is limited. |
I get OT as a nurse. My husband gets OT as a fed LEO. |
I’m a Police dispatcher and get OT. I take the hours thought not the money. So if I work an extra 4 hours I’ll take 6 hours of comp time instead of 4 hours OT pay. |
It’s $25,000 for married filing jointly. That’s a nice bonus for first responders. Between the no tax on overtime and Governor Youngkin’s Bold Blue Line initiative it’s a no-brainer for out of work professionals and graduating college students to go the law enforcement route. Increased wages Additional funding for equipment and training Pension + deferred compensation retirement plan Excellent health insurance Potential to earn$200k+ Take home vehicle No tax on overtime Retirement after 20 years |