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Are Hybrids "loss leaders" for Manufacturers? - READ ONLY

178 messages,  Last post on Mar 17, 2005 at 8:57 PM

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Messages Page 19 of 19

#176 of 178 no, you pay by electrictroy

Mar 17, 2005 (1:13 pm)

The corporation doesn't pay SS Tax, or Healthcare. They simply compute your wage as $40 an hour, subtract those costs, and give you the remainder as $30/hr to your paycheck. YOU are paying those expenses, but you don't realize it, because it's hidden.
 
Troy

#177 of 178 Re: no, you pay [electrictroy] by kernick

Mar 17, 2005 (8:52 pm)

Replying to: electrictroy (Mar 17, 2005 1:13 pm)
OT: Ask your employer how it works. Yes, you pay 7% or so from your paycheck, but your employer also has to match that, which doesn't come out of your paycheck. See: http://www.ssa.gov/pubs/10059.html
If you make $20/hr and work 40hr you get $800 gross. You'd have $56 taken out of your check. but your employer has to match that $56 and send it to SS.
 
And many people who work at mid-to-large size companies get health insurance (usually the employer will pay 80%).
 
Those SS, Medicare, health, 401K contributions, advertising, property tax ... are all expenses that get subtracted from revenues. They are all deductible, before profits are calculated. Believe me, I've just taken graduate classes in Accounting and Economics.
 
And I'm sure the system is very similar in Japan, as competition in different industries usually means that expenses are large compared to profits. A company may need to pull in $1,000,000 in revenue, have expenses of $950,000, to make $50,000 profit, and then get taxed 40% on that $50K, to net $30K.

#178 of 178 Re: no, you pay [kernick] by Sylvia

Mar 17, 2005 (8:57 pm)

Replying to: kernick (Mar 17, 2005 8:52 pm)
OK - off-topic. Let's get back on track please.

Messages Page 19 of 19

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