<p>I think some of you are underestimating the value of job benefits and taxes on the employer.</p>
<p>If you make $50K/year, your employer is paying 6.2% for social security, so add $3100/year. Add another 1.45% for medicare ($725). Add about $300/month if you get employer-paid health insurance (and $300/month would not be a great policy) and another $100/month for employer-paid dental and vision (so: 4800/year). Vacation pay adds another 5% (10 days off) and so does sick pay (10 days/year), so another $5000. </p>
<p>Some employers also provide pensions and disability benefits. Some just provide a good cup of coffee every day (but that adds up too… our small business pays about $100/month to provide a water cooler and coffee to our employees).</p>
<p>We haven’t even accounted for the state taxes that some employers have to pay and we’ve reached an added cost of almost $18000 on a paycheck that is nominally $50000.</p>