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He needs to
consider the endorsement. After all, the volunteer group of seniors in Santa Claus,
Ind., save him $3,700 a year that he'd otherwise have to spend on postage answering
letters from children who choose this route over the more popular e-mail option.
The sheer volume of presents means Santa's elves need
to work extended hours. While seasonal wages tend to be lower than
salaries, Dan Maddux, executive director for the American Payroll
Association, is very conscious of the fact the North Pole's minus-31-degree
winter temperatures puts a damper on recruiting. As a baseline,
Maddux estimates Santa pays each elf $1,624 in biweekly salary.
"Since the elves are under Santa's control and
direction, and work on-site at the workshop, they are considered
seasonal hourly employees rather than independent contractors,"
he says. That means Mr. Claus must also pay employment taxes and
provide worker's compensation.
And let's face it, if Macy's had to hire 8,500 seasonal
workers across just its Western division this season, Santa needs
to at least match that number.
So over the five-week frenzy, he must budget $34,510,000
in payroll needs.
Finally, tired of the same old scenery, Santa Claus
indulged in a summer home in North Pole, Ala., this year. He secured
the 4 acres on Lot 3 on Santa Claus Lane from a Re/Max Realtor at
$1,425,283 and built a six-bedroom, 5,300-square-foot home valued
at $550,000. A 30-year mortgage loan for the $1,975,283 at 6 percent
with 5 percent down means he has to cough up an $11,250.67 monthly
payment, or $135,008.04 on the year.
So what's it all add up to? Well, Santa's dimples
won't be so merry when his calculator determines that he owes $931,191,823
-- at least $922,967,823
more than he makes. That's serious bankruptcy material, and he has
yet to feed his reindeer.
Tara-Nicholle Nelson, a licensed real estate broker
and attorney in Oakland, Calif., who owns Tierra Real Estate and
Mortgage Services, offers Santa one small option. She sized up the
value of his current workshop at the North Pole -- which includes
a 3,000-square-foot single-family residence with special features
like a gourmet chef's kitchen, a campus that houses a 2,500-bed
dormitory, a 500,000-square-foot warehouse and stables -- against
similar properties in Alaska and determined that he is sitting on
$39,745,720 worth of property.
"He's going to have to find other
work if he wants to make money," Weinberg says. "Maybe he can be the
next Harry Potter character, but of course this is only one Jewish guy's opinion."
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