[LA.pm] advice about contracting

[Mark Hedges]

On May 25, 2015 5:52 PM, "Randal L. Schwartz" <merlyn at stonehenge.com> wrote:
>
> >>>>> "Jeremy" == Jeremy Leader <jleader at alumni.caltech.edu> writes:
>
> Jeremy> I'd guess that means you're a W-2 employee of a contracting
> Jeremy> company who's hiring you out to a company that needs work done
> Jeremy> but doesn't want to hire an employee. In theory, when the work
> Jeremy> runs out the contracting company should try to find another
> Jeremy> contract for you. In practice it can be the worst of both
> Jeremy> worlds; you've got the uncertainty of contracting, but with the
> Jeremy> contracting company taking a (sometimes sizeable) chunk of your
> Jeremy> fee. If they're providing decent benefits it might make sense.
>
> Exactly.
>
> And if your contract "runs out", the company who is W-2'ing you better
> f'ing provide unemployment, or there are a lot of laws broken.

Right, I'd be a W-2 employee of a contracting agency.  No benefits.  The
agency takes like 35-45% of the income.

The times I really start to wonder are when there are TWO companies between
me and the actual employer.  So much cash has gotta be going down the
drain, it makes one wonder how many drains there are and whose pockets they
lead to.  I have heard of schemes like that where the third party kicks
back to second party managers who kick back to first party managers under
the table so they can tap their budgets tax-free, but that would add up so
fast it's probably some kind of money laundering.

They'll withold state unemployment insurance, but if I get out there and
don't have enough time before they pull the rug out from under me, I won't
qualify for a claim.  At least, that's the way it works in California.

It doesn't add up.

Mark
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