tag:blogger.com,1999:blog-14245531.post3871694058416477382..comments2023-11-18T01:21:55.631-05:00Comments on My Open Wallet: The Employee/Employer RelationshipMadame Xhttp://www.blogger.com/profile/11536189690094235926noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-14245531.post-2651919499028050332012-04-19T11:21:28.180-04:002012-04-19T11:21:28.180-04:00Here's a solution - Karen could do her own cle...Here's a solution - Karen could do her own cleaning. She'd probably have to live with more dust, etc., but would be free from her financial dilemma.wills mamanoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-21056137459647071562012-02-09T13:46:58.326-05:002012-02-09T13:46:58.326-05:00Tracy is a big girl. She sought out cash employme...Tracy is a big girl. She sought out cash employment knowing of the benefits/lack thereof.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-55483997579703473452012-02-08T17:00:34.821-05:002012-02-08T17:00:34.821-05:00Let's see....that person could get cash (save ...Let's see....that person could get cash (save 20% from taxes not owed) or pay taxes and get less than 10% back.....if the person can't save they are screwed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-57555030513978148092012-02-08T00:36:16.298-05:002012-02-08T00:36:16.298-05:00Thank you, by the way, for posting again -- I miss...Thank you, by the way, for posting again -- I miss your not doing it more often on your blog!<br /> Tracy's an independent contractor, just like many of us out there. She should have been paying taxes, including Social Security taxes, all along. That's her responsibility -- just like everyone else. Tracy's actions, in asking for cash, say she understood all along that she had a responsibility to report her income -- but decided not to do it. <br /> If your friend decides to give Tracy a substantial parting gift, that's fine. But if she offers a pension, she'll be obligated to continue it. What if she loses her source of income, or has her funds decimated by medical costs? She'll be in big trouble. I'd stick with the lovely parting gift.Cindy Brickhttp://www.cindybrick.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-84153045278210953842012-02-07T19:38:11.979-05:002012-02-07T19:38:11.979-05:00Your friend's an amazingly generous employer. ...Your friend's an amazingly generous employer. But why does it have to be a choice between employer provided pension or the government stepping in? Part time cleaning jobs don't normally pay pensions, so the cleaning lady must have taken that into account and made her own saving arrangements for retirement. <br /><br />It's true that not everyone will make proper retirement planning. But that's true whether or not there are private or government pensions - generally they will not be enough to completely live off without other savings, eg. paid off house. <br /><br />At the end of the day, there has to be a balance between safety nets and individual responsibility and freedom.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-87333924607461893652012-02-07T12:07:21.400-05:002012-02-07T12:07:21.400-05:00I'm with those who think Karen does not owe Tr...I'm with those who think Karen does not owe Tracy anything. Tracy was the one who wanted to be paid in cash, and it was up to her to change that arrangement if she was concerned about her future. I think Karen is being taken advantage of if she gives Tracy any kind of retirement benefit, even if they are friends. If one of your friends (with whom you had no professional relationship) didn't have money to retire, would you feel obligated to provide for them? If the answer is no, then that should stand here.<br /><br />Re: "It also means the employee has to choose to save money and how to invest it, and we know not everyone chooses wisely." If someone doesn't choose wisely, that is ON THEM. I don't think everyone should be held responsible for one person's unwise decision. I fully support educating people to make good decisions, but after that it is up to them.Laurahttps://www.blogger.com/profile/17100746061554733157noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-86544476332763009982012-02-07T10:52:06.156-05:002012-02-07T10:52:06.156-05:00Psychsarah-- it used to be much more common for co...Psychsarah-- it used to be much more common for companies to give employees pensions that did not require employee contributions. The longer you stayed, the more of a monthly payment the company would give you after retirement. It was just considered a standard benefit in exchange for long-term loyalty to a company.<br /><br />Nowadays those have been replaced by 401k-type plans where the employee contributes and employers match it up to a point. Some argue that it's better for employees to have more "skin in the game." But it also means the employee has to choose to save money and how to invest it, and we know not everyone chooses wisely. <br /><br />In some ways it would be better to just have a stream of income after retirement from a pension-- but that means the company has to manage its pension fund appropriately so it will be fully funded to cover its obligations to retirees, and some companies have failed to do that.<br /><br />And if Karen did give Tracy any sort of retirement benefit, it certainly wouldn't be huge-- I think she's just thinking of some small ongoing payment, or maybe a small lump sum, I'm not really sure, but certainly not hundreds of thousands of dollars!Madame Xhttps://www.blogger.com/profile/11536189690094235926noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-4401947157868898232012-02-06T13:38:05.979-05:002012-02-06T13:38:05.979-05:00I agree with both commenters. I am in the same sit...I agree with both commenters. I am in the same situation myself. I do just like Karen does about holidays and off days in fact. My Tracy dropped all her clients due to old age and due to not needing the money so much anymore. She has a retired husband who gets a government pension and health benefits that cover her as well. She still keeps me as a client because we genuinely like each other. A friend of mine, an old client of hers had begged my Tracy to get on the Soical Security System many years ago and she was going to help her out with that but our Tracy did not want to get cuts from her earnings at the time since she was raising three kids. Although, I like her very much, I do not feel myself obligated to pay her any sort of pension. Besides, I really cannot afford it on my retirement income anyway. If I was rich I might have given her a large bonus as a parting gift when she stopped working altogether.T'Polhttps://www.blogger.com/profile/16207033510057896918noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-81703794366561820172012-02-06T12:48:18.359-05:002012-02-06T12:48:18.359-05:00I think it's very generous and decent of your ...I think it's very generous and decent of your friend to consider her housekeeper's needs, but something just doesn't sit right with me. If I took home my whole paycheque (without the numerous deductions I pay, such as taxes, employment insurance etc.) I would be a whole lot richer, and could afford to put away more for retirement. However, I am subject to all of those deductions, so I expect the meagre government pension I'll receive (hopefully, if the government doesn't screw it up before I retire) in exchange for those deductions. (I should mention I live in Canada for context. I also put in lots for my own retirement, as I could not survive on the government plan). If you never pay in, how can you expect to get something out? So, if Tracey hasn't contributed to a pension, why should she receive one? Just playing devil's advocate here. If Karen has the money and wants to share it, that's her prerogtive, but I don't know if I'd have the same feeling of obligation.psychsarahnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-15841413941664619422012-02-06T09:48:14.773-05:002012-02-06T09:48:14.773-05:00When I pay a contractor, whether in cash or by che...When I pay a contractor, whether in cash or by check, it is not my responsibility to make sure they report it on their taxes. Tracy had the option to begin paying income taxes, including Social Security, when she became a citizen.<br /><br />If I had a housekeeper or maid or butler, I would feel an obligation to provide some sort of retirement assistance.<br /><br />Does Karen have a few hundred thousand to give to Tracy when she retires? Is she concerned about the gift tax consequences? I would never have enough money to help someone else out in retirement, even though I save a substantial portion of my income (25%), I'm going to need every penny unless I die a year or two after I retire.<br /><br />What about the woman that's been cutting my hair for 15 years? For many years she's been working out of her basement, should I ask her if she pays taxes on all her income? Do I owe her a retirement? Health insurance? <br /><br />What about the kid that occasionally mows my lawn? I get a pass on that since he's a teenager and likely not to make a career out of it?<br /><br />I think having someone clean your house weekly or every other week does not mean you have to take care of them financially. Was Karen Tracy's only client? I think it would be different if you employed someone for 30 or more hours a week.<br /><br />Perhaps I'll stick with companies, like Merry Maids, and a landscaping firm for any household assistance in the future.Anonymousnoreply@blogger.com