How Paperwork Kills Summer Jobs

This article from the Central Valley Business Times: “Teens gain fewer summer jobs” has a deeper story rooted in the draconian ways that government stifles jobs.

Back in 1991, when I launched Wine Business Insider in a spare bedroom, I occasionally hired students from Sonoma Valley High School to do small jobs.

Three or four hours here and there, always minimum wage, but nothing regular. Casual labor was what a small, start-up could afford.

That operation grew, moved out of the bedroom into a real office and expanded into Wine Business Monthly and winebusiness.com … complete with full-time employees etc. I don’t think I could have grown from the bedroom into a larger company without the ability to hire hard-working students when needed.

But the draconian paperwork (FICA, FUTA, worker’s comp, IRS regulations … payroll accounting expenses) now required to hire casual labor means that — even though I can afford the wages — I no longer hire students … or anyone else … for a few hours here and there when needed.

I do need the assistance, but not at the expense of having government as a dysfunctional monkey on my back.

And who suffers most?

Students. People needing the money that casual labor can bring.