The new year is well underway, which means one big thing: it’s time to do your taxes again. That’s right, the task that you either look forward to or loathe is at our doorsteps once again.
Often, filtering through our tax process this year tends to put us in a particular frame of mind. We think of what we could do this coming year to make next year’s taxes less painful.
For example, we might want to alter how we get paid. Is it better to get paid weekly or biweekly for taxes? It’s a question many people consider when thinking about discussions they want to have with their HR at work. Which should you be doing? Read on and we’ll walk you through what you need to know.
Differences Between Weekly and Biweekly Pay
There are a lot of pros and cons to be considered when deciding weekly or biweekly pay for a set of employees. On one hand, weekly pay means money is moving into your bank account faster. You don’t have to wait to get new funds that you might need right away.
Even for a business, it’s often easier to get into a flow this way, with paychecks and paystubs going out on the same day every week.
However, there are a few drawbacks as well. Your employer has to pay deposit fees on a weekly basis and can save money if they go with a bi-weekly schedule. It also creates less potential issues for their accounting department.
This is important to keep in mind if you go to HR to request a change in the way you are paid.
Is It Better to Get Paid Weekly or Biweekly for Taxes?
When it comes to your taxes, which is the better option for your pay?
At the end of the day, the truth is that there is no big difference for your taxes no matter how frequently you get paid. If you look at the pay stub that your employer has likely made in a paystub online generator? You’ll notice that withholding is lower on a biweekly paycheck than it is on a weekly one.
This is because no matter which way you get paid, the amount withheld for taxes will end up being the same amount.
The percentage taken out of your paycheck to pay your taxes will just differ depending on the payment schedule that you are on. At the end of the day, this decision will bare no difference in how much you owe to the IRS.
With this in mind, you should advocate for the payment schedule that best suits you for other reasons, not for tax saving purposes.
Weekly vs. Biweekly Pay
Is it better to get paid weekly or biweekly for taxes? The truth is, it doesn’t make much of a difference. You’ll still owe the IRS the same amount at the end of the year no matter which payment schedule you are on.
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