Employees and Hidden Taxes: How Hidden Taxes Effect Employees

The amounts paid by your employer in matching hidden payroll taxes, is part of your employer’s payroll budget, but it is money you don’t get to take home.  It’s money your union will never be able to negotiate for you to get.


Why?  Because our current and complicated system of tax laws require your employer to pay those amounts of matching taxes in addition to what they take out of your paycheck.

Hidden Payroll Taxes lower Employee take-home pay.

Let me keep this little topic very simple.  If you make $10.00 per hour, and work 40 hours a week, your total earnings for that week will be $400.00.  Your take home pay will be $400.00 minus whatever payroll taxes your employer is required to deduct from your pay before letting you take the rest home.

The payroll taxes your employer is required to deduct from your paycheck are also part of the list of hidden taxes that are passed down to consumers.  In saying this, I am not suggesting that by ending all hidden taxes, your earnings should be lowered by the amount of payroll taxes deducted from your paycheck.

For my point here, I am saying that the payroll taxes deduced from your gross earnings, which you do not get to take home, are a hidden tax being paid by your employer, as required by law.

If all hidden taxes were ended in favor of transparent taxes, then your total earnings would not need to be lowered by the payroll taxes that are taken out of your paycheck.  I will talk more on this point in later topic sections.

Also, if the hidden tax nature of payroll taxes were ended in favor of a transparent tax, your employer would also no longer have to pay those matching payroll taxes that are hidden from you and from consumers.

Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
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It has been said that: "One definition of insanity is to do the same thing, the same way, over and over and over again, each time expecting to achieve a different result."
Therefore, we must either CHANGE the way we live, or we bind our future to our past as if with CHAINS.
"I do not consider myself to be better than anyone else.  But I do believe in exercising my right to not stay stupid."

David W. Kemper, Author
© Copyright 2014 by David William Kemper.  All right reserved
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