I think under this business model the bulk of money is paid out in the "bonus". I think the scam is to pay SS and WC on the 9 dollar an hour wage and leave the bonus money untaxed (on the front end). There are many quasi-legal fufillment business models out there. Most of them aim to keep the production high like a 1099 sub while having the w-2 employee carry as much of the costs of running a business (truck, etc.) Also avoiding paying OT.
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