posted on Jun, 12 2015 @ 01:03 AM
a reply to: Vector99
Employer contributions are paid out on an even for even (or nearly) with regards to FICA, SSI, and Medicare. Whatever my employees pay into those 3
items....my business pays.
On top of that, FUTA and SUI (federal and state level unemployment taxes) are levied based on a little more complex concept, but tie to payroll as
Short Term Disability Insurance, if there is an employer contribution, would also increase for employees that have that particular coverage as the
risk for insurance increases with higher wages.
Workers comp is calculated based on risk (usually something like 3 risk levels, which are essentially low, medium, and high, based on the job duties
being performed) and payroll costs (you will pay estimated monthly amounnts, and true up at the end of the calendar year, where you typically get a
small rebate because they always overestimate monthly payments).
Is this all figured in? Yes and no. It is figured in to the overall business model from the perspective of you generally will have a percentage of
labor you expect to see added on for your bonus plan, insurance costs, and taxes (that portion of your financial statement is called "Benefits and
Compensation", as opposed to simply "Payroll"). So it is "figured in" conceptually.
And part of that concept also would then involve accepting higher cost of goods as your vendors also go through this. Because your next step will be
to increase your price point. And thus the cycle closes.
And you know who is the only winner in any of this? The person collecting the higher payroll taxes at the end of the line. Everyone else in the
process either loses, or stays the same.
edit on 6/12/2015 by bigfatfurrytexan because: (no reason given)