4 ms·
I never understood why Uber didn't make all their employees (developers, marketing, sales) become contractors so they can save of all the additional costs.
by pkaye 11y ago
I never understood why Uber didn't make all their employees (developers, marketing, sales) become contractors so they can save of all the additional costs.
- jsprogrammer 11y agoWhat would Uber be then? Just a holding company that everyone dumps their money in to? Why would anyone do that?
- pkaye 11y agoThen a bulk of the value will go to the investors.
- jsprogrammer 11y agoBulk of whatever value exists. My point is that there probably will be no value for the investors to extract as none of the people who do the actual work would stand for such a structure for long. It would be trivial to introduce an organization that performs the same function, but which distributes all accumulated value to those performing the actions of the organization. Such an organization would have no use for investors who exist solely to take value out of the organization.
- dalke 11y agoBecause they might be liable for fines if the IRS determines that is a misclassification. See https://en.wikipedia.org/wiki/Misclassification_of_employees_as_independent_contractors https://en.wikipedia.org/wiki/Misclassification_of_employees... with the misclassification at Microsoft ( https://en.wikipedia.org/wiki/Permatemp#IRS_tax_rulings https://en.wikipedia.org/wiki/Permatemp#IRS_tax_rulings ) as a well-known example.