[LA.pm] advice about contracting

[Mark Hedges]

On May 25, 2015 11:19 PM, "Drew Taylor" <drew at drewtaylor.com> wrote:
>
> 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!
>

Oh yeah, just to clarify I would have been getting $57/hr, which means the
company would have been paying out like $90 to $100 per hour.  That's all
the hush hush part in these arrangements.

I don't understand the business rationalization for this since payroll and
benefits setup are pretty much automated and outsourced these days.  Unless
they see tbemselves as protected from liability… but are there really that
many lawsuits to justify that cost?  So if you have to look for a profit
motive, I'd tend to suspect tax fraud kickbacks and embezzlement as the
primary motivator to perpetuate this subculture of inefficient use of
shareholder funds.

Mark
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