I am a small business owner. I own a little insurance agency with myself and one employee. My income is based entirely on new business and renewal commissions. I have an employee who I would love to be able to increase her wages. The problem with my business is that I cannot increase insurance premiums to cover increased costs as other businesses can increase the cost of their food, products, and services to cover more wages. The insurance industry is a different animal in that individual agents have zero control on premium increases. All industries are not equal that they can pass on wage, rent, utilities, tax, insurance, transportation, or other business expense increases to consumers.
There are also additional costs above and beyond the actual wage increase such as unemployment insurance, errors and omissions insurance, and all the other federal and state taxes and insurance increases that go along with a wage increase. So, a $3.00 an hour increase actually may cost the employer $4.00 to $4.50 an hour more after all the other factors are added on.
There have been many months that my employee got paid and I did not after paying her and all my business expenses. The employees always get paid. Small business owners do not.
There are also additional costs above and beyond the actual wage increase such as unemployment insurance, errors and omissions insurance, and all the other federal and state taxes and insurance increases that go along with a wage increase. So, a $3.00 an hour increase actually may cost the employer $4.00 to $4.50 an hour more after all the other factors are added on.
There have been many months that my employee got paid and I did not after paying her and all my business expenses. The employees always get paid. Small business owners do not.
