Fair point you need to think in gross terms not just net. $600 a week on unemployment is $15/hour or $30000 a year. Not great by any means but enough to support yourself. A company paying $15/hour also has to pay FICA and SUTA taxes for the employee. That’s 7.65% plus whatever the state unemployment tax is which could be around 1-3%. That $15 becomes $16.30 or more.
Plus the employee has to pay taxes, and assuming an effective rate of 20% between state and federal income tax, the employee would need to be paid $18.75 to bet $15/hour. Add that together for the employer and they are paying over $20/hour to keep somebody who is receiving the same amount of net money to sit around and do nothing. It’s hard to convince a person to work in that scenario. And paying 25% more (20/hour vs 15/hour in this example) isn’t doable for many businesses.
To be fair it's $600 per week ONTOP of what they normally get from the state unemployement system. In my state the max per week was $400. So some people are making $4k a month on unemployment with the $600 that was added on by the gov.
I was kinda hoping my wife would have gotten furloughed for just that reason, but my state's so far behind processing UI claims, people are wondering if they'll EVER get paid.
So pay more than 600 a week.
Fair point you need to think in gross terms not just net. $600 a week on unemployment is $15/hour or $30000 a year. Not great by any means but enough to support yourself. A company paying $15/hour also has to pay FICA and SUTA taxes for the employee. That’s 7.65% plus whatever the state unemployment tax is which could be around 1-3%. That $15 becomes $16.30 or more.
Plus the employee has to pay taxes, and assuming an effective rate of 20% between state and federal income tax, the employee would need to be paid $18.75 to bet $15/hour. Add that together for the employer and they are paying over $20/hour to keep somebody who is receiving the same amount of net money to sit around and do nothing. It’s hard to convince a person to work in that scenario. And paying 25% more (20/hour vs 15/hour in this example) isn’t doable for many businesses.
To be fair it's $600 per week ONTOP of what they normally get from the state unemployement system. In my state the max per week was $400. So some people are making $4k a month on unemployment with the $600 that was added on by the gov.
I hope these guys are doing upfront withholding on their unemployment benefits... cuz that shit's taxable.
Wonder how many sit-at-home cucks are going to shit their pants when they see their tax bill in January.
In most states it was 60% of your normal pay through state unemployment plus $600 in federal unemployment on top of it.
I was kinda hoping my wife would have gotten furloughed for just that reason, but my state's so far behind processing UI claims, people are wondering if they'll EVER get paid.
People don't produce $15/h of productivity while at work.