Wednesday, May 6, 2015
YOLO COUNTY NEWS
99 CENTS

The high cost of employment

By
From page A6 | April 24, 2014 |

There are repercussions from raising the minimum wage. For those who do not, nor have ever had, the responsibility — as owner, CEO, CFO or otherwise — for paying the bills for supplies and other essentials to run the business, as well as paying employees along with payroll taxes and fees, raising the minimum wage seems simple.

It is called naiveté or, better still, living in a utopian bubble. How many employees really know the costs of employing a person? The employer must have general insurance that includes liability, the costs for which are dependent on the type of business and the risks involved. Required workman’s compensation insurance costs are based on risk of injury in types of work done by employees.

Then there’s FICA, which until 2011 was 12.40 percent, split equally between the employee and employer. In 2011, the employee share was decreased to 4.20 percent, with the employer’s share remaining at 6.20 percent. The Medicare tax is 1.45 percent for both the employee and the employer. In addition, the employer pays federal unemployment tax.

All these taxes require reporting to the IRS on a mandated schedule, with additional quarterly and annual reports, all requiring specific forms, filed by specific dates.

The state also requires employer taxes. The schedule for the employer to make the deposits to the state Employment Development Department is dependent on the number of employees and the payroll, and the summary reports quarterly and annually. The taxes applied are a percentage set by the EDD of the gross wages paid and include the unemployment insurance and employment training tax.

The employer also must report and pay to the IRS the federal income tax, the FICA and the Medicare deductions collected from the employee, and to the State EDD, the personal income tax and the state disability insurance deductions collected from the employee. Any additional benefits are costs.

To raise the minimum wage means that for all those now at current minimum wage or those in a higher position, but at the proposed minimum wage, the wages will have to be raised. How much can a small business pay, before costs and risks exceed income? Will consumers pay what will be increased prices for “end product”?

The city of Davis already has a budget problem, the solution for which is not more tax.

Vernette Marsh
Davis

Comments

comments

Letters to the Editor

.

News

County supervisors receive positive report on Laura’s Law

By Anne Ternus-Bellamy | From Page: A1

 
Fix it yourself, with a little help, at Bike Forth

By Bob Schultz | From Page: A1 | Gallery

 
New chemistry building in the works at UCD

By Special to The Enterprise | From Page: A1

Bob Dunning: Squeezed by the math on conservation

By Bob Dunning | From Page: A2

 
Big Day of Giving surpasses $5 million goal

By Enterprise staff | From Page: A2

 
California regulators approve unprecedented water cutbacks

By The Associated Press | From Page: A2

 
Kids get a peek at the great outdoors

By Special to The Enterprise | From Page: A3

BeerFest expands to include cider

By Enterprise staff | From Page: A3

 
Heidrick Ag History Center rebranded as California Agriculture Museum

By Special to The Enterprise | From Page: A3

May 11 talk focuses on clean water

By Enterprise staff | From Page: A3

 
‘From Age-ing to Sage-ing’ guides library group

By Enterprise staff | From Page: A3

Crossing lines, on ‘Davisville’

By Enterprise staff | From Page: A3

 
’12 Angry Men’ will screen Friday

By Enterprise staff | From Page: A3

Pet Food Express organizes Save a Kitten fundraiser

By Special to The Enterprise | From Page: A4

 
Round up at the registers for Davis schools

By Enterprise staff | From Page: A6Comments are off for this post

 
Retirees to hear about Woodland’s shade tree campaign

By Enterprise staff | From Page: A6

Origami lovers will meet at library

By Enterprise staff | From Page: A6

 
Breast cancer treatment update offered

By Enterprise staff | From Page: A6

Earth-centered author comes to Avid Reader

By Enterprise staff | From Page: A6

 
MIND Institute lecture will focus on prenatal exposure to insecticide

By Special to The Enterprise | From Page: A6

Pence Gallery: We’re overflowing with gratitude

By Natalie Nelson | From Page: A9 | Gallery

 
Health care documentary will screen at meeting

By Enterprise staff | From Page: A9

Who is Ralph Hexter? Chancellor’s No. 2 fills us in

By Tanya Perez | From Page: A10 | Gallery

 
.

Forum

Injection wells endanger our aquifers

By Special to The Enterprise | From Page: B4

 
New book flows with good news about water

By Special to The Enterprise | From Page: B4 | Gallery

Living with this for 30 years

By Creators Syndicate | From Page: B5

 
.

Sports

Aggies go flat in 7-1 Sacramento State win at Raley

By Bruce Gallaudet | From Page: B1 | Gallery

 
Devils crush Edison to earn McClatchy rematch

By Evan Ream | From Page: B1 | Gallery

Blue Devils grind out a victory over Oak Ridge

By Thomas Oide | From Page: B1 | Gallery

 
Davis boys dominate first playoff match

By Spencer Ault | From Page: B1 | Gallery

 
Alliance/Legacy roundup: Local squads fare well over the weekend

By Enterprise staff | From Page: B3 | Gallery

 
AYSO roundup: Davis teams capture Fog Classic crowns

By Enterprise staff | From Page: B3 | Gallery

Pro baseball roundup: Giants blank Pads, win fifth straight

By The Associated Press | From Page: B10

 
.

Features

.

Arts

Sac Ballet presents Modern Masters on May 8-9

By Jeff Hudson | From Page: A7

 
High school artists exhibited at Pence Gallery

By Special to The Enterprise | From Page: A7

 
See Christian Quintin’s paintings at Hattie Weber Museum

By Special to The Enterprise | From Page: A7

Academy of St. Martin in the Fields Chamber Ensemble returns

By Jeff Hudson | From Page: A7 | Gallery

 
Davis Youth Flute Choir tunes up for China tour

By Enterprise staff | From Page: A8

.

Business

.

Obituaries

.

Comics

Comics: Wednesday, May 6, 2015

By Creator | From Page: B5