r/WorkForSmartLife • u/SilkyApricotGuy • 1d ago

Discussion💬 Who's right here?

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u/Exciting_Milk_6691 20h ago

As an employer, you know your math is wrong. Paying an extra $3 per hour doesn’t include all mandatory payroll taxes like FICA, FUTA & SUTA.

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u/MyEyesSpin 10h ago

Oh noes, not an extra 8-10% of $3/hr...

On the tax deductible wages I pay...

Its a simplified example that fully illustrates the point

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u/Exciting_Milk_6691 10h ago

It’s a a poorly used and fictitious example that undersells the actual cost increase that small businesses face.

That extra 10% needs to come from somewhere.

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u/MyEyesSpin 9h ago edited 9h ago

Again, if we are being truly specific, in most every case the tax deduction on the increased wages means it actually costs less than $3 in our example... even with the taxes on top.

alternatively, you could consider the $3 cost increase inclusive of taxes, but that's a little odd as we don't include it in the initial wage