Comment by thuridas
2 days ago
Aren't we creating incentives for workers abuse:
- No tax on overtime: so now making them work 60 hours a week is cheaper for the employer
- No tax on tips: so the tip based payment model is cheaper
2 days ago
Aren't we creating incentives for workers abuse:
- No tax on overtime: so now making them work 60 hours a week is cheaper for the employer
- No tax on tips: so the tip based payment model is cheaper
Yes, and my understanding is that this is precisely the point.
Income tax is paid from employee salaries/wages, not by employers.
Doesn’t matter, money is fungible.
My money is not fungible with my employer's money. Money being fungible does not mean I get to use your money.
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Not sure how is it now, but when I worked in a plant overtime work was paid at 150% rate of regular pay. Work during national holidays was paid at 200% rate. Isn’t this still the case?
(The workforce at the plant was unionized and the higher rate may have been part of the labor contract. This was in Montreal Canada about 25 years ago. )
How is it cheaper for the employer?
They can pay lower wages because the employee is losing less of their income to tax. Supply and demand.
For the same amount of money employee gets it requires employer to pay out less.
That’s not how income tax works, particularly for minimum wage workers.
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