Exactly.When I first found out how much an employee costs ON TOP of what he/she is already paid, I had to go home to change my underwear. Makes it simple to understand how hard it is for small business to stay IN business.
And that's why I left NY.I've never paid cash yet, although never say never. I have had illegal aliens work for me in the past. However they have come to me with all the proper paper work and state isued ID's, which I am required to ask for and collect copies of. I would withold taxes etc through my pay roll service, and after the first quarterly filing I'd get a notice in the mail stating their information is incorrect. I'd let them know their papers don't match and that'd usually be the last day I would see them.
I did everything right for 5 years and have nothing to show for it. I paid out more in taxes than I earned. I paid out more in insurance than I earned. It makes me sick that what I was paying out JUST for unemployment isnurance was greater than my own personal earnings. 9% of payroll to cover unemployment. Everyone around me is cheating. After I sell a job and pay my dues, there is nothing left for me. The profit in our business is in the cheat. I'm just plain sick of it. Anyone want to buy a business with well established websites and ongoing free leads through those websites? I'll work as a commissioned sales rep. Believe it or not, I don't, but on paper we are profitable. Although on paper it says we are profitable, I haven't ever seen this elusive mythical profit in my pocket.
I know of at least one company that has 40 guys, but on paper has 4. He cashes his checks at the currency exchanges and pays damned near everyone with cash. Most of his guys are for sure illegal aliens. By my calculations, he's pocketing well over $100k extra a year just by doing this.