What was the total 'Payroll taxes' expense for Mr. Sandless during January-February 25?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| Jan - Feb 25 | |
|---|---|
| Ordinary Income/Expense | |
| Expense | |
| Merchant deposit fees | 1,845.07 |
| Payroll | 110,594.77 |
| 6039 · Payroll Expenses - Gross | 13,256.47 |
| Payroll - Other | |
| Total Payroll | 123,851.24 |
| Payroll taxes | |
| 6040 · FUTA | 230.25 |
| 6041 · PaUC | 2,374.87 |
| 6042 · S.S. & Medicare | 8,398.79 |
| Payroll taxes - Other | 3,023.01 |
| Total Payroll taxes | 14,026.92 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the total payroll taxes expense for the period of January through February 2025 was $14,026.92. This figure is derived from several components, including FUTA (Federal Unemployment Tax Act) at $230.25, PaUC (Pennsylvania Unemployment Compensation) at $2,374.87, S.S. & Medicare taxes at $8,398.79, and other payroll taxes amounting to $3,023.01.
For a prospective Mr. Sandless franchisee, understanding these payroll tax expenses is crucial for accurate financial planning and management. These costs represent the employer's share of taxes related to employee wages and are in addition to the gross payroll expenses. Failing to account for these taxes can lead to underestimation of operating costs and potential financial strain.
It's important to note that these figures are based on unaudited financial statements for a specific two-month period and may not be representative of typical expenses throughout the year. Factors such as changes in staffing levels, wage rates, and tax laws can impact these costs. Therefore, a franchisee should consult with a financial advisor to project payroll tax expenses accurately for their specific business circumstances.