[LA.pm] advice about contracting

[Drew Taylor]

The agency takes 35-45%.... So really you're making more like $31/hr. No
one with *any* kind of experience should be working for those wages. I've
done a little research in the past and the umbrella corps tend to take more
like 10-15% to handle all the paperwork. 35% sounds like highway robbery,
especially considering you're getting essentially nothing for that money.
Ugh!

Drew

On Mon, May 25, 2015 at 8:16 PM, Mark Hedges <mark.hedges.data at gmail.com>
wrote:

>
> 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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