What was the total amount of Payroll Taxes paid by Gold Star in 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------|---------------------------| | Retained Earnings, December 31, 2022, As Restated | $ 1,312,822 |
NOTE 25 – SUBSEQUENT EVENT
The Company has evaluated subsequent events through April 8, 2025, which is the date the consolidated financial statements were available to be issued.
In February 2025, the Company entered into a 15-year lease for a building in Hamilton, Ohio. The lease has three 5-year renewal options with a purchase option in years 20 through 30 of the lease. The lease will commence 30 days from the Company's opening for business to the public, which is anticipated to be April 2025. The rent payments over the life of the lease will be $476,124.
GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF SELLING , GENERAL AND ADMINISTRATIVE EXPENSES
| -------------------------- | -- |
|---|
| 2022 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | (Restated) | ||||
| Research and Development | $ 35,511 | $ | 37,484 | $ | 41,997 | |
| Salaries and Wages | 6,959,176 | 6,101,035 | 5,600,894 | |||
| 401(k) Expense | 64,584 | 73,246 | 65,823 | |||
| Advertising Expense | 886,959 | 921,454 | 996,584 | |||
| Depreciation and Amortization Expense | 1,312,395 | 1,000,384 | 876,592 | |||
| State and Local Taxes | 755,808 | 757,139 | 716,467 | |||
| Pa |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company paid $577,437 in payroll taxes for the year 2024. This figure is part of the selling, general, and administrative expenses detailed in the consolidating statement of income.
Payroll taxes typically include the employer's share of Social Security, Medicare, and unemployment taxes. These taxes are a direct cost of employing people and are usually calculated as a percentage of employee wages and salaries. Franchisees should be aware that these costs can fluctuate based on staffing levels and changes in tax laws.
For a prospective Gold Star franchisee, understanding the payroll tax obligations is crucial for financial planning. This expense, along with salaries and wages, 401(k) contributions, and employee benefits, constitutes a significant portion of operating expenses. Monitoring these expenses closely can help franchisees manage their profitability and ensure compliance with tax regulations.