Stimulus

I have been told that an 'essential' worker stocking supermarkets would be better off on unemployment now than going to work. Brilliant bill we passed. If someone shows up to work, says, "I have a cough" (unverifiable of course), they are sent home for two weeks with full pay. Small business owner is given the free money to keep all his employees 'working'. Enough money for all to feed their families.....except.... not money for the actual business owner to feed his family.
We've read about the misery Ace is going through. When the government is in charge... it rarely goes well.....

Quote: SOOPOO

I have been told that an 'essential' worker stocking supermarkets would be better off on unemployment now than going to work. Brilliant bill we passed. If someone shows up to work, says, "I have a cough" (unverifiable of course), they are sent home for two weeks with full pay. Small business owner is given the free money to keep all his employees 'working'. Enough money for all to feed their families.....except.... not money for the actual business owner to feed his family.
We've read about the misery Ace is going through. When the government is in charge... it rarely goes well.....

Many workers are making more unemployment because you make your base unemployment wage, plus 600 a week. So if you make 500 from UI, plus 600, you are getting paid 1100 a week. But, you are only eligable if you are eligable for UI (laid off for circumstances beyond your control).

As for getting paid to stay home. I think that is necessary. It is 100% pay for being sick or potentially infected yourself, and 66% pay if you have to stay home for a family member or watch a child whose school was closed due to Emergency orders. You can use this to weeks of leave before having to use any personal leave time. So it allows you to self-quarentine without having to use your sick or vacation leave days. Very good benifit for workers.

Quote: SOOPOO

I have been told that an 'essential' worker stocking supermarkets would be better off on unemployment now than going to work. Brilliant bill we passed. If someone shows up to work, says, "I have a cough" (unverifiable of course), they are sent home for two weeks with full pay. Small business owner is given the free money to keep all his employees 'working'. Enough money for all to feed their families.....except.... not money for the actual business owner to feed his family.
We've read about the misery Ace is going through. When the government is in charge... it rarely goes well.....

Why would private business be any more reliable? Some will do a lot for employees, some will do as little as possible.

Quote: SOOPOO

Small business owner is given the free money to keep all his employees 'working'. Enough money for all to feed their families.....except.... not money for the actual business owner to feed his family.

If the owner draws a salary, isn't his paycheck payable also for the period covered?

Quote: RonC

If the owner draws a salary, isn't his paycheck payable also for the period covered?

I don't know. I remember reading years ago some years the Bills made a boatload, and other years they made very little. And supposedly it was because some years the owner would pay himself a big salary as President and CEO, and other years he'd pay himself very little. "Salary" for an owner means little.
I am just guessing, but if you own a pizza store, you don't pay yourself a salary. You see how much money is left over at the end of the month, and that is your take home. If they can call that a salary? I don't know.

Quote: SOOPOO

I don't know. I remember reading years ago some years the Bills made a boatload, and other years they made very little. And supposedly it was because some years the owner would pay himself a big salary as President and CEO, and other years he'd pay himself very little. "Salary" for an owner means little.
I am just guessing, but if you own a pizza store, you don't pay yourself a salary. You see how much money is left over at the end of the month, and that is your take home. If they can call that a salary? I don't know.

Most small businesses I have heard of the owner draws a salary when they can. In slow season they may not draw anything. It comes down to a balance between abilities of the business cash flow to cover it and their needs. If you want to have personal credit they like to see steady paychecks, not irregular draws. Most businesses however have some seasonality to them and the low season is unprofitable.

Quote: SOOPOO

I am just guessing, but if you own a pizza store, you don't pay yourself a salary. You see how much money is left over at the end of the month, and that is your take home. If they can call that a salary? I don't know.

Doing it that way is a disaster for most small business's they never build up any cash reserves. A smart small business owner pays himself a salary he can live on but not huge. Once a year at tax time he sits down with his accountant and decides how to handle any profits in way that keeps taxes to a minimum.

WOW!!! Bank of America getting torn to shreds on Twitter over placing conditions upon small businesses seeking to apply for the Payroll Protection Plan:


Sen. Rubio talking about it
https://twitter.com/marcorubio/status/1246098553350610944?s=20

Quote: SOOPOO

but if you own a pizza store, you don't pay yourself a salary. You see how much money is left over at the end of the month, and that is your take home.

Wow, you'd last a couple months doing
that. I owned a couple businesses, my
wife had one for 20 years. You always
pay yourself a salary, for IRS reasons
if nothing else. What you suggest is
how you run a lemonade stand, not
an actual business. You would also
never find a competent accountant
who would let you do that. I'm
talking brick and mortar businesses
with employee's.

Quote: Evenbob

Wow, you'd last a couple months doing
that. I owned a couple businesses, my
wife had one for 20 years. You always
pay yourself a salary, for IRS reasons
if nothing else. What you suggest is
how you run a lemonade stand, not
an actual business. You would also
never find a competent accountant
who would let you do that. I'm
talking brick and mortar businesses
with employee's.

What planet was your business on? I've known several business owners who are able to draw nothing for most of the year. In college we were taught flat out that if you need a regular weekly salary then owning a business is not for you. One bodega I would frequent the guy said the place made no profit except when a big convention was in town, that let him clean up until the next. He lived for the Fury convention, it was his best week of the year.