Re:Americans Are Putting Billions More Than Usual in Their 4...
by kgwgk on Thursday January 05, 2017 @03:00PM
(#13330799)
Maybe you will have to give them a raise when they notice that pay elsewhere has gone up. Of course if they already get 6% more than they would at the next comparable job today there is no economic reason to give them the raise, but there is not economic reason to pay them so much currently either.
Re:Americans Are Putting Billions More Than Usual in Their 4...
by bogomipz on Thursday January 05, 2017 @07:23PM
(#13332800)
>" if for no other reason than SS taxes are capped so you reach a point where more salary does not equal more SS tax."
Indeed, social security isn't taxed on anything above 118K.
Every offer is up to 6.2% lower. I have a business with employees but their pay is sufficiently low (compared to the revenue of the business; their pay is above market for the jobs they do) that SS does not enter into our calculations. If the employer portion of SS was eliminated tomorrow we would not give anyone a 6.2% raise, nor would future employees get offers 6.2% greater.
I'm sure somewhere there is an employee whose salary is a big piece of a business's income and they would have gotten a little more money had that tax not been there. But I'm pretty sure that's the exception rather than the rule, if for no other reason than SS taxes are capped so you reach a point where more salary does not equal more SS tax.