Expert: Shirley McAllister, CPP, PHR - 12/7/2011

Question
Hi I work for a small vet office in I.N. It's only me, the doctor, and another office girl.  He complains about our pay checks alot.  I only get paid a little over minimum wage.  the other girl makes like +11.00/hr.  There are 55 hours available and we break them up somewhat evenly.  He is confused.  Sometimes me and the other girl agree to work full a 9 hour days compared to a 4 1/2 hour day split between both of us. he gets all bent out of shape, worried she's getting too many hours, but it is fine an even outs at the end of the pay period.  He tried to explain to me why he looses money when i don't work enough hours or too many in a day or I'm not sure???  He said something about the money they take out of my pay check every week.  I guess he also looses money too.  do you have any idea what he's talking about and explain it to me??

Answer
What he is complaining about is the other girl gets paid more money per hour which means more Social security tax and Medicare tax is withheld. The employer must match what is witheld from the employee.

So if you make 7.25 minimum wage and work 30 hours your gross is 7.25 X 30 0r 217.50. He pays 7.65% for Medicare and Social security tax or 16.64.

If She makes 11.00 and hour and works 30 hours her gross is 11.00 X 30 or 330.00. He pays 7.65% for Medicare and Social Security Tax or 25.25.

Kind of petty to complain over that small of a difference in taxes.

Shirley