Minimum Wage
California is going from $10 ti $15 per hour. Let’s play with these numbers for a bit. The business owner’s cost include the hourly rate paid, plus social security tax, workman’s compensation, and unemployment compensation. Social security is 7.65 %, and the other two at 3 % each brings the current $10 labor cost to $11.36 per hour. At $15, the cost is $17.04. That brings the hourly rate raise costs to $5.68. For a full time employee (2080 hours per year), that bring the cost to $11,814.40 per year. If there are 30 full time employees in a fast food joint, the employers addition cost for labor comes to $354, 432.00 per year. In this small town,we have 9 restaurants that can fall into this catagory. It isn’t a question of which one will close, but how many..