Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Ditto
Are you somehow under the impression that when an employer withholds tax money (Income, SS & Medicare) from an employee's check, that the employer gets to keep that money?

You are confused, I don't think that.

103 posted on 08/23/2005 10:03:55 AM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
[ Post Reply | Private Reply | To 84 | View Replies ]


To: RobFromGa
In your "letter" you surely indicated that the difference between take-home and 100% of the employees gross earnings was something that the employer needed because these were the only Fed taxes that this S-corp had.

"Businesses will not be able to pay 100% of their paychecks to their employees, because they need these "embedded tax" savings to be able to lower their selling prices."

The business is paying that full 100% already -- split between the employee and the IRS. Giving all 100% to the employee makes no difference in payroll expense for the business.

From an employee standpoint, where the business does save considerably in on the employer portion of wage taxes which you didn't mention. You seem to not be aware if the 7%+ for the employer portion of employee wages which is over and above the employees gross pay, and in "Bob the Baker's" case, the 15%+ of his wages that currently go to FICA & Medicare. How come you missed that part?

You also seem to ignore all the supplies that Bob the Baker buys and the average of 15-20% embedded income and wage taxes in those.

BTW. You business wouldn't have anything to do with Taxes, would it?

113 posted on 08/23/2005 10:25:48 AM PDT by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
[ Post Reply | Private Reply | To 103 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson