tagged w/ payroll
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CNBC.com | Wednesday, 27 Feb 2013 | 11:53 AM ET
Fred Deluca, the founder of privately-held Subway Restaurants, said government regulations are hurting small businesses and that this environment has prevented entrepreneurs from creating value in the market. "If I started Subway today, Subway would not exist," Deluca told CNBC's "Squawk on the Street" Wednesday.
Deluca said the environment for entrepreneurs in the U.S. has "continuously gotten worse because there are more and more regulations. It's tough for people to get into business, especially a small business."
Effects of Obamacare
The Subway founder pointed to a number of government regulations that are degrading the business environment for entrepreneurs. Examples include the Affordable Care Act, an increase in the minimum wages and the end of the payroll tax holiday.
The Affordable Care Act, often referred to as "Obamacare," is "the biggest concern of our franchisees," Deluca said. "They don't know what to expect. It's causing a lot of concern, but that too will be passed on to the consumer."
Payroll Tax
The payroll tax is another overhang. "The payroll tax is affecting sales. It's causing sales declines," he said, estimating a decline of about 2 percentage points off sales at his restaurants. "There are a lot of pressures on consumers," Deluca said, adding "I think this is on the permanent side, but I think business will adjust to it."
Minimum Wages
Deluca also said minimum wages have to increase over time, but "doing a sharp raise all at once is a bad idea. Minimum-wage workers deserve to make more and a little bit of an increase makes sense to me." He said that "wages directly affect prices" and "it will cause franchisees to raise prices, there is no question about it."
Subway currently employs minimum-wage workers, he said, but depending on the market, wages are often higher based on demand.
Deluca also said there was "huge interest" in people looking to start Subway franchises, since budding entrepreneurs now find it difficult to get loans. "There are a lot of challenges out there," he said, suggesting these difficulties encourage entry into an established brand such as Subway.
— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul
© 2013 CNBC.com
URL: http://www.cnbc.com/100501700CNBC.com | Wednesday, 27 Feb 2013 | 11:53 AM ET
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By Lindsay Beyerstein, Media Consortium Blogger
Congressional Republicans and the White House struck an agreement in principle on Monday night to extend all the Bush tax cuts for 2 more years in exchange for extending unemployment benefits. The GOP agreed to the so-called “Lincoln-Kyl compromise” a partial 2-year extension of the Bush estate tax cuts on estates worth over $5 million. If the deal had not been struck, estate taxes on estates over $5 million would have gone back up from 0% to the pre-cut rate of 55%. Instead, the rate will be 35% for the next 2 years.
The GOP also agreed to a short-term “stimulative” 2 percentage-point cut off the 6.2% payroll tax we all pay on income up to $106,800. The good news is that a payroll tax holiday will provide the most noticeable tax relief to low- and middle-income Americans. The bad news is that payroll taxes fund Social Security, so cutting the tax means starving a program that most directly benefits average people. Social Security is not in crisis yet, but steps like these could push the program into worse financial straights where significant benefit cuts become inevitable. It’s almost as if the GOP, having failed to spark panic about an as-yet non-existent Social Security crisis, is determined to engineer one.
All these gimmes for the rich were the price of a partial extension of unemployment benefits. The stakes couldn’t have been higher. If Congress had failed to act, 2 million people stood to lose their benefits this month and another 7 million would have run out before the end of next year, reports Andy Kroll of Mother Jones.
Meanwhile, unemployment continues to rise. The economy only added 39,000 jobs in November when analysts were expecting about 150,000. “At the beginning, some people just thought it was a printing error,” said reporter Motoko Rich on the New York Times‘ weekly business podcast. The overall unemployment rate climbed to 9.8%.
At ColorLines, Kai Wright argues that the time has come for President Obama to seize the opportunity to debunk conservatives’ bad faith arguments for tax cuts above all else:
At the same time, the anti-government crowd’s political hand—if forced—has never been weaker. A depressingly large number of middle-class and working-class Americans now know all too well what economists have long understood: You get a great deal more economic bang out of keeping lots of people from becoming destitute than you do by helping a few people horde wealth. People remain enraged about the no-strings-attached bank bailout, for instance, because they intuitively understand its ramifications. Wall Street is now enjoying a narrow, taxpayer-financed recovery while unemployment, hunger and poverty all continue climbing through the former middle class.
Extending UI makes sense
Tim Fernholtz of TAPPED tackles some of the bad arguments against extending unemployment insurance. Economist Greg Mankiw claims that extending unemployment insurance is just a surreptitious ploy to redistribute income to the poor from the wealthy. Actually, as Fernholtz points out, the point of a UI safety net is to prevent people, 3 million of them in 2009, from becoming poor in the first place. Poverty is very expensive for society at large. If we can keep the unemployed in their homes, spending their benefits in their communities, we can keep the socially corrosive effects of poverty at bay until the economy improves. The social costs of child poverty alone have been estimated at $500 billion a year, Fernholtz notes. The deeper we allow people to sink into poverty, the more difficult it will be for the economy to rebound. On this view, UI is a shared investment in a well-ordered society, not just a lifeline for jobless families.
Why corporate tax cuts won’t create jobs
Jack Rasmus of Working In These Times explains why tax cuts will not create jobs. Simply put, banks and big companies are sitting on over a trillion dollars. Among the nation’s biggest banks, lending to small and medium size businesses, the engines of job creation, has dwindled over 2009 and 2010. America’s biggest companies are sitting on a hoard of $1.84 trillion dollars, which they are not investing in job-creating projects. The Deficit Commission recommended slashing corporate taxes, ostensibly to spur investment and job creation, which would ultimately generate taxable income to help balance the budget. As Rasmus points out, this wishful thinking is predicated upon the assumption that if only corporations had more money, they would invest it to create jobs. The fact that companies are already sitting on huge piles of cash suggests that shoveling more moolah on the pile won’t change the basic dynamic. Perhaps companies are waiting to invest because they know that consumers aren’t keen to buy goods and services when they are unemployed or fearing job loss.
Economic disobedience
At In These Times, Andrew Oxford interviews sociologist Lisa Dodson about her new book on getting by in the low-wage economy. Her research shows that as economic instability mounts, many Americans are quietly taking matters into their own hands:
To understand how fair-minded people survive in an unfair economy, Dodson interviewed hundreds of low-wage workers and their employers across the country, examining what she terms the “economic disobedience” now pervasive in the low-wage sector. From a supervisor padding paychecks to a grocer sending food home with his employees, these acts of disobedience form the subject of her latest book, The Moral Underground: How Ordinary Americans Subvert an Unfair Economy.
Winner-take all economy
In an interview with Democracy Now!, Yale political science profesor and Jacob Hacker explains why the Deficit Commission has it all wrong when it comes to tax cuts vs. unemployment benefits.
Hacker studies inequality. He has written a book on how the richest Americans cornered an unprecedented share of the country’s wealth for themselves over the past three decades. The richest Americans have never been in a better position to help the country grapple with the deficit. Yet, as Hacker points out, the Deficit Commission wants to balance the budget on the backs of middle- and lower-income Americans by cutting spending on programs that disproportionately benefit working people and readjusting the tax code to make it even more favorable to the rich.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.By Lindsay Beyerstein, Media Consortium Blogger
Congressional Republicans and the... more
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This is an invention that will allow employers to save on a few steps in the payroll process.
Employees will simply have their payroll information (hourly pay, type of work, employer, location of job, employee number, etc.) recorded into the machine.
They will check in and out with the T.A.P. recorder and it will automatically pay the employee. Everyone has ATM cards so that is what you use to have your pay deposited into your account. Use an employee number and you pin or finger/palm prints to ID yourself to the T.A.P recorder. Collect a print out of your paystub or have it emailed to your account.
Even if you work at a place large enough to have more than one employer, maybe temps or other contractors supply workers at the place. Each employer will be supplied a separate function button so that their employees can use the same T.A.P. recorder. Information is sent electronically from remote locations to their office.
I think this is pretty self explanatory, everyone keeps their same bank, get their pay at the end of the day or week. Eliminating the need for overdrafts or payday loans. Employers get to cut lose the payroll company they've used or delete the payroll function from their operations, saving money. Business consultants get another way to help businesses become more efficient and profitable.
Look for this T.A.P recorder to come to market soon.This is an invention that will allow employers to save on a few steps in the payroll... more
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SOMERVILLE, N.J. — Anthony Armatys, 35, of Palatine, Ill. pleaded guilty for accepting payrolls over $470,000 from Avaya Inc. the company he never worked for.SOMERVILLE, N.J. — Anthony Armatys, 35, of Palatine, Ill. pleaded guilty for... more
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