We have discussed in past issues the serious battle Social Security has on its hands. Although we may complain about the amount of money we pay each month towards our Social Security contributions, they are essential if we want to receive our well-earned pensions come retirement age.
When a business owner hires an employee, they do not only have to take their salary into account when calculating costs, but a portion of Social Security and a quarterly tax amount must be factored into the overall expense. These two concepts are based on a percentage of said salary so it stands to reason, the fewer hours the employee works, the lower their salary and the lower the taxes to be paid out by the business owner.
