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Would Increased Minimum Wage Affect Home Businesses?

by Mary Emma Allen on January 11th, 2007

Currently there’s considerable discussion of legislation being introduced in Congress to increase the minimum wage. How will this affect the home business owner?

There are two areas to consider.

*If you have employees (and some home businesses do), you likely would have to pay out more in wages, social security, unemployment tax, and related payroll expenses. (In some states employers also pay an additional fee/tax based on payroll.)

How will you cover higher payroll? Charging higher prices on goods and services is one way. Letting one or more employees go and doing more yourself is another.

*If you don’t have employees (and if you do), you may find increased costs for your materials and overhead because the businesses that manufacture or provide them will have to increase their prices.

This a matter for you to research and find how the increased minimum wage would affect your business? Your accountant could give you figures.

Also, online sites, such as the All Stop business resource, with many articles on minimum wage throughout several decades,provide information. There are many others that will give you pros and cons concerning this topic. As you explore the idea of minimum wage and how it affects you, you’ll have some decisions to consider about your home business.

Tags: , , , , minimum+wage

POSTED IN: Laws & Regulations, Online Resources

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