You do not know my business nor do you know my business philosophy.
We all have certain guuidelines that we follow...and then we all deviate where we deem it appropriate.
Certain expenses are that...expenses.
Other expenses that are NOT constant, are expenses that are deducted from my distribution.
An increase in UI, whgich has not even come close to being an issue will be exactly that. A decrease in my take-home. I will not sacrifice quality of employee by offering lower salaries than the market dictates.
In my business, that would be suicide.
I was only judging your business decisions by precisely what you posted as your business decisions. I don't make presumptions about people or judge their opinions by anything other than what they reveal here.
And yes, most of us do eat the expense and don't reduce the wages of our employees because of a modest incidental tax increase on this or that. But if the overall costs of doing business doesn't affect what you offer new hires or what new benefits or wage increases you can offer your existing employees, or your projected bottom line is not affecting what new hires you can afford or what expansion is reasonably indicated, I would question your business judgment if I was evaluating your business for a loan.
There are hundreds of employers in our area who are already calculating the cost of additional taxes once the Bush tax relief expires at the end of this year, and the consequences of having to provide mandatory health insurance for their employees and other affects of existing and pending legislation. They are taking long hard looks at what that will do to their bottom line and that is absolutely affecting their long term plans for expanding and increasing their work force. And not in a good way.
And THAT I believe is exacerbating the unemployment problem and is one of the reasons that the unemployment fund is exhausted.
Maybe I should elaborate.
I am a NYS sub chapter s corp. I take a low salary and quarterly distributions.
When I am evaluated for a loan, my distrinutions are not a factor included.
Any non constant cost simply affects my distributions. Not my gross net before distributions.
Friend, I am not arguing your business decisions. But I don't care if you're running a lemonade stand, if you base your business on anything other than the existing or reasonably probable bottom line, you're in much more danger of going bankrupt than if you employ reasoned business decisions. I don't know how lending insitutions evaluate that in New York. In New Mexico, they evaluate the probability of you being able to repay your loans.