DeaconCav06
Dickie Hemric
- Joined
- Mar 17, 2011
- Messages
- 30,812
- Reaction score
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She was doing fine before the pandemic. The lunch crowd was enough to pay the bills, then she made her money on corporate catering. Having to cut capacity, combined with a decided lack of large corporate events over the past year, has hurt, but they have gotten by. I would assume that if she could get back to her pre-pandemic numbers, she would be able to manage with the wage hike, but at the current level, it would be too much. But this whole conversation started from a couple minutes of a phone call, not an extensive look at her finances. It make me do a bit of a double take, because it was a different side of the issue that I hadn't really thought about. So naturally, I brought it over here to get some other opinions.
Yeah, in addition to the wage hike employers are going to be on the hook for their half of the employees taxes. Will federal and state unemployment taxes stay the same? Certainly workers comp (and a number of other insurance premiums) are likely to go up.
The Fortune 500 can easily absorb that expense. The smaller businesses? Who knows.