That can happen, depending on your company’s payment software. One place I worked at would calculate the expected tax burden based on the highest paycheck you made, so if you worked 50% overtime (thus making 175% of your normal paycheck), it would be placing you in a way higher tax bracket for the rest of the year, and you’d have to reclaim it all in the refund when you did your taxes.
That can happen, depending on your company’s payment software. One place I worked at would calculate the expected tax burden based on the highest paycheck you made, so if you worked 50% overtime (thus making 175% of your normal paycheck), it would be placing you in a way higher tax bracket for the rest of the year, and you’d have to reclaim it all in the refund when you did your taxes.
Yeah this is just the payroll processor intentionally fucking with people, not how taxes work.