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I assume that people who say "not having to pay employer tax share for contractors" they mean things like unemployment insurance, and other employer-components
by nopzor 11y ago
I assume that people who say "not having to pay employer tax share for contractors" they mean things like unemployment insurance, and other employer-components of "payroll tax"? Is that still a red herring?
Also, it seems the paperwork and entities involved would get messy. The "employees" still own the car and need to expense/depreciate it, right?
- SilasX 11y ago>I assume that people who say "not having to pay employer tax share for contractors" they mean things like unemployment insurance, and other employer-components of "payroll tax"? Is that still a red herring? It doesn't have the same dynamic as the payroll tax, but it's misleading because the other point applies: the more benefits you buy for workers, the less (direct) cash you have to offer to entice them to do the work. Like with health insurance, a mandate for it would just mean Uber would lower time/mileage rates. In effect, this is the same as forcing drivers to use their cash earnings to buy unemployment insurance, which may be a worse use of the money. >Also, it seems the paperwork and entities involved would get messy. The "employees" still own the car and need to expense/depreciate it, right? Huh? They're already doing that as contractors. And Uber is now at the scale where (relatively) fixed paperwork costs aren't that big a deal.