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Old 05-18-2007, 08:56 PM
 
15,642 posts, read 26,286,872 times
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My Space Moose friend -- it isn't just taxes -- for business owners it's workers comp.... our workers comp out here is SO high. The Chron profiled a box making company in LA that moved it's operations to Vegas. A lot of the company workers went with him. While he was winding down the operation in LA, he left two workers there.... the other 48 were in Vegas. His CA worker's comp for TWO workers was three times higher than for the 48 in Vegas.

I know for our business, janitorial, we would have to pay out about 25 cents for every dollar paid to the worker to cover him for worker's comp. So if I wanted to pay a living wage of 20 bucks an hour, at 800 a week, I'd send another 200 hundred to worker's comp.

Add to that -- businesses MUST offer health insurance and pay 80% of the cost. (there's a number of employees thing, but over so many you have to do this).

Add to that -- I have to pay 7.5% social security tax (half).

And payroll....

So this guy who's making 41,600 dollars wages, is costing me around another 20K that I have to recoup by raising my rates. Only 20K, if we stay working out of our house -- if we have to have rent an office somewhere, add that rent to it, too...

Hiring is not worth it. That's why in 2 years it's fish or cut bait time. We will have enough saved to retire, or we can change the business to hire people to do it for us. Either way, in two years my vacuum pushing days are over -- I ain't working past fifty...
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