Friday, December 10, 2010

Unemployment Compensation

Unemployment compensation? We're now giving money to people for three years to do nothing. But, are they really doing nothing? I wonder how many are actually working part-time or at temporary jobs "off the clock"? They draw their unemployment pay and then work or do things that generate revenue on a "cash pay only" basis while not actually accepting employment as regular full-time employees. This way they receive money from the government and cash money from an employer. This way they don't have to provide a Social Security number and consequently don't have to pay income tax, FICA tax, or deductions for benefits. The employer doesn't have to pay FICA taxes or benefits. The money paid to "off the clock" workers is charged to some other expense account such as "Truck Expense", etc.
Its a good deal for both. In total the worker is getting as much or more "in-pocket"money as when he was fully employed. He has more free time, and he doesn't have to pay taxes. He may also get food stamps. If he or his family become ill they go to the Emergency Room at the local hospital, and it is paid out of the county Indigent Care Fund. The employer doesn't have to pay as much per hour, has less paperwork, and doesn't have to deduct or pay taxes. Such a deal!
So where is the incentive to get a full time regular job?

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