Good Day! My question would be regarding my annual withholding tax. I was employed and resigned on March 31, 2015. Got employed by a different company by April 1, 2015. Here with my new employer, I am receiving a higher pay compared to my previous job. How is my annual withholding tax computed? There was an adjustment on my tax computation this month and I was informed that this was due to my pay from my previous job Tax deducted is really higher than the usual, it's at 41% give or take. I cannot visualize how it is being computed. Let's just say that from my previous job, my monthly basic pay was 35,000. Then on my current job, it's 45,000. How would this affect my annual withholding tax computation? Should it really be the case that my tax deduction shoot up at 41%? I'm getting confused on what is being deducted. Do I get a tax refund on this? or just accept the fact that I will get deducted higher than the usual, since my base pay increased? Thanks and hoping to get a response from you. God Bless!
-Terrence