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.
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.