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increasing prices to cover 2% payroll tax increase?

Discussion in 'Business Operations' started by lawnsaspire, Feb 5, 2013.

  1. lawnsaspire

    lawnsaspire LawnSite Bronze Member
    Posts: 1,511

    Anyone increasing prices to cover the higher tax rate for self employment, aka payroll tax for this year? Just wondering if as I'm trying to figure how much to increase to cover yet another challenging tax situation.
     
  2. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    You are kidding right? What percentage of your companies gross is your salary? Lets be generous and say 25%. Now your expenses just went up 1/4 of a percent and you are going to have an increase to address that issue.
    Posted via Mobile Device
     
  3. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,519

    Stop watching the news programs and get out your calculator or spreadsheets
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  4. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,792

    Higher tax ?
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  5. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    Could easily be another 1-3k depending on the number of employees
    Posted via Mobile Device
     
  6. britsteroni

    britsteroni LawnSite Senior Member
    Posts: 334

    The number of employees has nothing to do with it. The 2% increase doesn't effect the business owner except for for his/her own salary. Remember that the payroll tax savings was on the employee side, not the employeer side of the social security tax.
     
  7. keithslawnc

    keithslawnc LawnSite Member
    Posts: 207

    He is correct! Employers never had the exemption.
     
  8. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    Oh I see. Interesting.
    Posted via Mobile Device
     
  9. lawnsaspire

    lawnsaspire LawnSite Bronze Member
    Posts: 1,511

    its just me here guys. no employees
    Posted via Mobile Device
     
  10. Alluring Lawns

    Alluring Lawns LawnSite Member
    Posts: 82

    He is probably talking about the 2 percent increase in the self-employment tax in 2013 ( from 13.3 to 15.3). So yes it is a valid question.
     

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