It all depends on your accounting methods. If a contractor and an in house guy work the same amount of time doing the exact same job, and the in house guy earns $1000 before taxes that contractor would need to earn at least $1250 to be equal. Maybe more depending on the inhouse guys overall compensation package. For an in-house employee, his earnings are just part of his compensation package. For a 1099 contractor, what you earn is your complete compensation package.
In house guy earns $1000 in wages+ has Med Ins + paid vacation+ is covered by companies GL & WC insurance.
Contractor earns $1250 in earnings. All the "+" the in house guys have on top of his earnings, become "-" when applied to a contractor.
Many guys look at this scenario and still say the contractor earns more. Companies, as well as people with common sense, think differently. Companies would rather be able to get the specified amount of work done and be able to pay the contractor $1250 and be done, because its cheaper.
Re: at&t strike??
There is 1 reply to this message
