The dude who gets my money
Andy on Jul 15th 2007
I typically don’t write about my cartoon obsession here, but I recently ran across one that seemed appropriate.
This is Zits from 7/14/2007, in which Jeremy, the main character, learns a harsh reality about life.
I bring this up on my blog because I became more acutely aware of how much “that FICA dude” was getting when I became self employed. When you start writing the checks yourself, as opposed to your employer taking the money out before you even see it, there is an even more stark realization.
Filed in Amusing, Contracting, Order N | 4 responses so far
Houman Jul 17th 2007 at 03:39 am 1
He gets my money too!
Jon Hendry Jul 20th 2007 at 10:02 pm 2
Isn’t it more that when you’re self-employed you’re paying double? Usually you pay half and your employer pays half, but when self-employed you pay the whole thing.
nevyn Jul 20th 2007 at 11:14 pm 3
In Sweden, 35% of what my clients pay me actually get to my pocket (or rather, to my bills…)
Jim O'Connor Jul 25th 2007 at 10:30 am 4
You pay both halves whether you are self-employed or not. It is just that when you have an employer you never see the other half that you were paid.
You must earn the part of FICA that your employer sends on your behalf, just as you must earn all of the mandatory benefits. It is just that rather than getting the money and deciding how you will use it Uncle Sam gets the money and decides for you. Congratulations, you just bought a $500 hammer.
Every mandatory benefit, every tax imposed on an employer is paid one of two ways, the employees get lower pay or reduced job security (as the company becomes less profitable) or the customer get reduced quality or increased price, or some combination of those.