For example: on a standard 30-year fixed-rate mortgage, the monthly payment on a $200,000 loan would be $955 for a 4% mortgage versus $1074 for a 5% mortgage. Thatâs a monthly difference of $119. You might think that low rates encourage people to buy homes, but itâs not quite that simple.
If your payroll expenditures fall within 15-30% of gross revenue, your business is in a safe zone. Businesses that live within this range tend to be most successful, at least from a payroll perspective.f your percentage falls above 30%, in the red zone, itâs time to come up with a new strategy immediately. Maintaining a payroll that falls above 30% of your gross revenue is one of the most common reasons for a business to fail. Identify it first and then we can fix it.
Including the employee and employer shares of Social Security and Medicare taxes, earners in the middle fifth of the income distribution pay an average effective payroll tax of about 11 percent. In contrast, the top 1 percent of earners pay just 1.5 percent on average. Let me turn now to different options for making adjustments to the cap.