Khross wrote:
TheRiov wrote:
Kaffis Mark V wrote:
You know, it was my recollection that I got offered a wage *before* they made me fill out a W-4, Riov.
with the understanding that taxes would be taken out. Are you really so naive that you think that such things are not figured in?
Actually, you're the naive one since at least 40% of the total cost of your employment isn't something you ever hear about ...
You do know that your employer matches both of your payroll tax deductions? You do know that your employer is required to keep various forms of liability and damage insurance beyond whatever immediate benefit is provided to you right? You do know that your "unemployment benefits" are paid into a state run insurance account and fundamentally operate as a tax on you having job? You do know that your employer likely pays somewhere around 75% of your actual group plan costs right?
More to the point, you do know that all of these wonderful expenses no one told you about in high school are based on your gross salary, not your net? Consequently, since your employer actually has to figure out how much you cost them (and you better believe your value needs to meet their cost, not your salary ...) based on your gross pay, it would be naive to assume they do their calculations based on your take home at all. In fact, the only thing about your net they care about is not breaking a god damned withholding law in getting you that check.
And, by the by, all of those taxes and government imposed costs are higher if you're self-employed ...
But, yeah, I offer my employees their wages based on take home ...
Actually, you know, come to think of it ...
In 13 years of owning a multi-state operation, I've never once offered a person a salary based on what they'd take home; I've always offered them a salary based on what it cost my **** business.
Yes I'm well aware of these things Khross. But you're not just going to give them money if you don't have to.
lets use your numbers:
CURRENT SITUATION: You're hiring a highly skilled/educated employee with lots of experience. In order to retain that person you're offering them a salary of $100,000/yr. Now your costs are $140,000/year. The person's take home is more like $60,000/yr.
YOUR HYPOTHETICAL: World without tax, you can hire a person for $60,000 that they can live comfortably off of. Their expenses remain unchanged. Are you going to just hire someone for $140,000 (so your costs are unchanged) knowing you could get the same employee for $60,000? of course not. Nor are you going to pay them $100,000. You're going to pocket the difference. you MIGHT use that cash to pay for another employee. But what if you don't have the work?
I've seen enough places that don't fail to hire people because they can't afford it-- they don't hire people because they have nothing for those people to do.