1 If your health insurance premiums are paid entirely by your employer or the government, you cannot deduct the cost. 2  If you have health insurance through your employer and your share of the premium is deducted from your paycheck pre-tax, you cannot deduct the cost because the premiums were tax-free already.
For example, an employee earning minimum wage and working a full 40 hours per week currently takes home a gross pay of $290 per week. In theory, a $1.75 minimum-wage hike would increase that employeeâs gross pay to $360 per week. However, thatâs only if that employee continues to work 40 hours per week, a scenario that will become increasingly less realistic under Obamacare, which gives employers a huge incentive to cut worker hours.
Employee works 70 hours. Our fluctuating work week employee is still making the guaranteed $400 salary but now has 30 hours of overtime. That makes the employeeâs regular rate of pay just $5.71 per hour ($400 divided by 70).Thatâs less than minimum wage so the fluctuating work week agreement would be invalid.o the fluctuating work week employee gets a better deal during the slow months. In the summer, that same employee might work 50 hours. The employee still gets the $400 guaranteed salary but when you look at the hourly rate, that employee is earning $8 per hour ($400 divided by 50).