Did you learn that in your high school economics class?
That’s how I used to think, too.....before I ran my own business for 40 years.
Did you learn that in your high school economics class?When you calculated how much an employee cost you to employ you didnt include that amount? When you set pay rates you didnt also factor taxes and benefits paid by you for a total compensation cost package?If an employee cannot earn enough to cover their entire compensation, including taxes and benefits paid directly by the employer, then you will lose money on that position.
You may have wrote the check but your employees earned it or you would not have hired them. - FreedomNotSafety
Learned some little economics in a couple of college classes, yeah.Thats how I used to think, too.....before I ran my own business for 40 years.
Income taxes - and thats what the payroll tax is - create a wedge between what the employer pays and what the employee gets. And it feels to the employee like he pays the whole thing, and it feels to the employer that he pays the whole thing.And I respect the fact that the employer takes pride in treating employees well, and hates laying them off. Not as bad as the employee hates to be laid off, of course, but . . .
Owning your own business taught you that the total cost of an employee didnt include the taxes you paid for them? Must have been some business.