But the Right to Know Payroll Form also shows costs that often go unseen. These include the employer's share of social security and medicare taxes, the employer's costs of unemployment insurance and workers' compensation costs, the employer's costs of administering these taxes, and the employer's costs of complying with state and federal personnel-related mandates, such as the Americans with Disabilities Act and the Family and Medical Leave Act. Shatters the myth that taxes and mandates can be placed on employers without affecting the workers themselves. Promotes reasonable business tax and regulatory policy, including simplifying the Internal Revenue Code or replacing it with a flat tax or national sales tax. Encourages participation in the democratic process.
Helps raise awareness of employment-related public policy, and how it affects their jobs.
Developing the Cost Data is Simple To implement the Right to Know Payroll Form, an organization must first identify the various taxes and other costs imposed by government on the employment relationship. The sum of these is the Estimated Payroll Allocation. Most of these are already defined, and those that are deducted from gross pay are usually already shown on the pay stub. The Right to Know Payroll Form, however, extends payroll accounting beyond the standard withholding deductions to demonstrate to employees all the employer's costs, including the employer's share of payroll taxes and the costs of administering those taxes and other employment-related mandated benefits. Accountants and tax and benefits managers can calculate the total cost of these programs, and estimate an average cost per employee.