Comment by bb88
8 years ago
Because a contract is not employment. A contractor has less protections than an employee.
It's both good and bad, but typically a contractor gets a higher rate than an employee since health insurance, etc is not provided.
8 years ago
Because a contract is not employment. A contractor has less protections than an employee.
It's both good and bad, but typically a contractor gets a higher rate than an employee since health insurance, etc is not provided.
OP was pointing out that if they were a contractor for three years, they were violating IRS rules.
Not necessarily. If the employee is going through a body shop (and it sounds like he was, since he had a recruiter) then he might be an employee on W2 of the staffing agency, but not on the actual payroll of the company. That's different than forcing the person on a 1099 as part of an employment contract.
In the end he's still a "contractor" in the eyes of the company, and typically if something goes wrong, he's gonna be the first to go.
Yes I said that in my sibling comment.
To clarify, I find it incredulous that a 3 year contract requiring full-time, on-site, business hour presence wouldn't legally require a company to treat that person as a full-time employee with benefits.
So a staffing company may fly people in for the week and then fly them home on the weekends, especially for desperately needed skills.
The problem is that not everyone wants to live in Detroit, KC, LA, Chicago, say. So instead they fly back and forth.
People always say this but I am a contractor and I have health insurance.
There's multiple ways to interpret the statement... but can you clarify?
Does a staffing agency pay as a W-2 employee and provide an insurance plan?
I'm a contractor (1099) so I buy my own insurance. So I have it...
In either of the above cases, the company where I do my work does not provide my insurance.
> Does a staffing agency pay as a W-2 employee and provide an insurance plan?
Not necessarily. Some will, but the coverage is usually not awesome. Then the question is, do you want the health insurance, or is it better to get obamacare because the staffing agency is likely going to be more temporary?
I'm becoming more an more of a believer that health insurance should be separate from employment. Mostly because your health is permanent and employment is most likely temporary.