healthmyths
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- Sep 19, 2011
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I wrote the "journalist" who wrote this article..Minimum wage hike debated among economists, businesses | Dallasnews.com - News for Dallas, Texas - The Dallas Morning News
Ms. Jean...
You and other champions including Obama in his State of the Union of raising the minimum wage NEVER explain that EMPLOYERS' don't pay currently $7.25 per hour.
The FACT is it is at $7.25 wage per hour the employer ACTUALLY PAY $8.09 per hour.
And if the minimum goes to $9.00 EMPLOYERS will pay almost $10.05/hour!
You and other non-business experienced advocates(including Obama!!) NEVER wrote payroll much less signed the payroll taxes forms!
If you did you'd know the EMPLOYER ALSO pays: 6.2% for Social Security- 1.45% Medicare,- 2.79% for Federal Unemployment taxes,- 1.25% workman's compensation.
So you should be honest and share WITH everyone the misconception that the media has done i.e. the current minimum is NOT $7.25 per hour
but is after employer paid payroll taxes $8.09!
That would be honest as the employee get's the benefits of the EMPLOYER's additional costs above and beyond the $7.25/hour!
Remember the employer pays OUT $8.09/hour not $7.25, because of EMPLOYEE's Social security/Medicare/unemployment benefits, workman's compensation!
Now for Reality!
Let's assume the local Jack-in-the-Box illustration you provided at their AVERAGE rate of $7.39 per hour which is after adding the employer's contributions
is really $8.24. Not the $7.39 you reported!
If the minimum goes to $9.00 thus making the Jack-in-the-Box real wages plus SS/Medicare/FUTA/Workmans' comp $10.24 per hour.
That means the local Jack-in-the-Box with 1,275 employees at 48 locations, additional $4,141 per employee at the $9/hour PLUS 13.8% additional FICA/FUTA/etc. with each location averaging 26 hourly employees, each location will HAVE to pay an additional $4,141 per employee.
An additional costs per location of $110,018!
Those are the facts!
So if forced to figure out where each location will come up with additional $110,000 a year.. what do you think they'll do?
Each location has a NET income after of ~$60,000 per location...
WHERE WILL THEY COME up with an additional $110,000 per location if their NET is ~$60,000???
YOU quoted Brian Luscomb, spokesman for Jack In the Box:
1) they will have to reduce the hours of current employees..
2) or raise the prices.. which very reluctant to do...
Stock:Jack In The Box (JACK))
Do you know understand WHAT the impact of YOUR not telling the whole story will have?
Because of you and other reporters NOT fairly telling readers that:
A) $7.25 really means $8.09 in costs to the employer and
B) $9.00 minimum wage means $10.05 a nearly 24% increase when you consider the EMPLOYER PAYS on top of the $9.00 another 12%!
C) That 24% increase will either because of you and fellow reporters NOT explaining the TRUE costs of raising minimum wage
1) CUT current minimum wage employees' hours or
2) raise prices for the rest of us to pay.. i.e. INFLATION!
One other glaring piece of information you left out...
TIPS for many of those earning $7.25 average per the below quote average an additional $16,153 a year in addition to the hourly minimum wage!
This works out instead of a poor measly $7.25 (USING YOUR figures..) per hour to a $15/hour !
Each year, according to the economist Ofer Azar, diners hand over some $42 billion in tips at the nations full-service restaurants,
which employ 2.6 million waiters, most of whom rely on tips for the bulk of their incomes.
http://www.nytimes.com/2008/10/12/magazine/12tipping-t.html?pagewanted=all&_r=0
Ms. Jean...
You and other champions including Obama in his State of the Union of raising the minimum wage NEVER explain that EMPLOYERS' don't pay currently $7.25 per hour.
The FACT is it is at $7.25 wage per hour the employer ACTUALLY PAY $8.09 per hour.
And if the minimum goes to $9.00 EMPLOYERS will pay almost $10.05/hour!
You and other non-business experienced advocates(including Obama!!) NEVER wrote payroll much less signed the payroll taxes forms!
If you did you'd know the EMPLOYER ALSO pays: 6.2% for Social Security- 1.45% Medicare,- 2.79% for Federal Unemployment taxes,- 1.25% workman's compensation.
So you should be honest and share WITH everyone the misconception that the media has done i.e. the current minimum is NOT $7.25 per hour
but is after employer paid payroll taxes $8.09!
That would be honest as the employee get's the benefits of the EMPLOYER's additional costs above and beyond the $7.25/hour!
Remember the employer pays OUT $8.09/hour not $7.25, because of EMPLOYEE's Social security/Medicare/unemployment benefits, workman's compensation!
Now for Reality!
Let's assume the local Jack-in-the-Box illustration you provided at their AVERAGE rate of $7.39 per hour which is after adding the employer's contributions
is really $8.24. Not the $7.39 you reported!
If the minimum goes to $9.00 thus making the Jack-in-the-Box real wages plus SS/Medicare/FUTA/Workmans' comp $10.24 per hour.
That means the local Jack-in-the-Box with 1,275 employees at 48 locations, additional $4,141 per employee at the $9/hour PLUS 13.8% additional FICA/FUTA/etc. with each location averaging 26 hourly employees, each location will HAVE to pay an additional $4,141 per employee.
An additional costs per location of $110,018!
Those are the facts!
So if forced to figure out where each location will come up with additional $110,000 a year.. what do you think they'll do?
Each location has a NET income after of ~$60,000 per location...
WHERE WILL THEY COME up with an additional $110,000 per location if their NET is ~$60,000???
YOU quoted Brian Luscomb, spokesman for Jack In the Box:
1) they will have to reduce the hours of current employees..
2) or raise the prices.. which very reluctant to do...
Stock:Jack In The Box (JACK))
Do you know understand WHAT the impact of YOUR not telling the whole story will have?
Because of you and other reporters NOT fairly telling readers that:
A) $7.25 really means $8.09 in costs to the employer and
B) $9.00 minimum wage means $10.05 a nearly 24% increase when you consider the EMPLOYER PAYS on top of the $9.00 another 12%!
C) That 24% increase will either because of you and fellow reporters NOT explaining the TRUE costs of raising minimum wage
1) CUT current minimum wage employees' hours or
2) raise prices for the rest of us to pay.. i.e. INFLATION!
One other glaring piece of information you left out...
TIPS for many of those earning $7.25 average per the below quote average an additional $16,153 a year in addition to the hourly minimum wage!
This works out instead of a poor measly $7.25 (USING YOUR figures..) per hour to a $15/hour !
Each year, according to the economist Ofer Azar, diners hand over some $42 billion in tips at the nations full-service restaurants,
which employ 2.6 million waiters, most of whom rely on tips for the bulk of their incomes.
http://www.nytimes.com/2008/10/12/magazine/12tipping-t.html?pagewanted=all&_r=0