I wouldn't say that UEI is the only cause but it is a contributing factor along with SS and now ObamaCare.
-You've never ran a business huh?
Here, let me explain UEI to you;
It doesn't just magically appear out your azz, someone has to pay for it and that someone is an employer.
The rates an employer pays varies widely on the state they employ in and the amount of turnover they have. Better(more consistent) employers get somewhat better rates.
This is optional reading that I created for Romare but I still think she was too stupid to understand it. The links won't work for you because I'm copying and pasting them and you don't rate high enough on my scale to justify doing the legwork.
I'll post it for you one more time. hang on.
(It seems you have DELETED the question, no wonder you're asking AGAIN)- don't worry, I used my answer for you Q on another.
this formula and websites deal with FUTA and SUTA; this post may help you understand how it works. I created part of this for another answer but I'll edit what should be important for you.
Do the math; $350 x 52 weeks= $18,200 (before taxes)
6.2 percent X $7,000 = $434 FUTA tax
6.04% X $8,000 = $483.20 SUTA tax
FUTA with max exemption $56.00 + 483.20 = $539.20 FUTA/SUTA tax paid per year
$539.20 X 30 years = $16,176 total contribution which would be under $18,200 received.
This is a best case scenario and to be fair you also have to take into account the 33%
income tax that is stolen directly.
Few, if any have contributed enough to warrant it.
I did Alabama because it seems like a middle of the road percentage. AK had a 31k cutoff and Mass had
Now you need to factor in SS of which an employer MATCHES EVERY DIME that is stolen from you by the government.
You are also required to pay a matching amount of social security and Medicare taxes for your employees and to pay State and Federal unemployment tax.
There is also a little vague section at the bottom of the above link referring to FUTA and SUTA. It's nowhere near as specific as I gave you.
-What I'm getting at is that because of UEI and SS and employer has to pay a minimum of $14,000 per employee just in taxes. THAT is a deterrent to employ people no matter how you look at it.
Do you understand now or do I need to use the little words for you?