alt Hacker NewsAren't we creating incentives for workers abuse:
- No tax on overtime: so now making them work 60 hours a week is cheaper for the employer
- No tax on tips: so the tip based payment model is cheaper
Replies
flanked-evergl • 08/01/2025
Income tax is paid from employee salaries/wages, not by employers.
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dh2022 • 08/01/2025
Not sure how is it now, but when I worked in a plant overtime work was paid at 150% rate of regular pay. Work during national holidays was paid at 200% rate. Isn’t this still the case?
(The workforce at the plant was unionized and the higher rate may have been part of the labor contract. This was in Montreal Canada about 25 years ago. )
Yes, and my understanding is that this is precisely the point.