Yep, that $1,000.00 from your business quickly turned into around $1,600.00 a week right?! Try offering insurance and watch the vacuum!
Looks like CO needs a visit from the UI fairy.
No, it was more like about $1300, but still...I was just recalling the reduction from gross my employee suffered, but I forgot to consider the extra I had to kick in, as you imply. I didn’t much mind the 6% FICA, but the unemployment insurance & worker’s comp, for a worker who did zero physical work other than walking in the front door and pouring coffee (oh, that was the big hazard!) and cranking the FAX machine and pushing his chair in was jaw-dropping. If were to add in med insurance, then it would crank up to nearly $1600, I’m sure.
Employees are very expensive when you add in all your contributions as employer and any el-nonproducto periods of “training”, if needed. Obviously, and of course, many employees can be valuable moneymaking parts of your business, but they can also cause lots of problems and turn around and sue you for trivia.
In two later businesses I had which were very successful, I simply would not take on employees. I couldn’t see how it would be profitable. I just grew the thing until the point where I maxed out what I could handle on my own and capped it there.