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The reason they weren't made employees is pretty simple: there'd be a bunch of payroll taxes to pay. Either the already meager driver split would need to go dow
by rtpg 11y ago
The reason they weren't made employees is pretty simple: there'd be a bunch of payroll taxes to pay. Either the already meager driver split would need to go down even more, or they'll have to raise prices that users have to pay...
Knowing Uber, they'd probably push down employee wages and then run into minimum wage issues...
- danieltillett 11y agoAren't the payroll taxes just shifted onto the driver anyway? The wages of the drivers would go down, but their take home pay would stay the same.
- rtpg 11y agoI think that's true for the most part, though I bet a lot of people under-report. But there are things like health insurance which Uber would have to provide (and in the contractor case, are instead subsidised through Obamacare provisions) that I think would end up with take home being less...
- danieltillett 11y agoIt would have to be risky as a driver to under-report as they would be one pull of Uber's data away from an audit by the IRS. Health insurance might be more of a problem, but this is really only a US issue. I am wondering if a franchise model (say like McDonald's) might get you to a model where you have the benefits of employees, but without all the associated issues.
- infinite8s 11y agoIt doesn't even require a pull of Uber's data. Unless the driver is making less than $600/yr from Uber, Uber is required to file a 1099-MISC with the IRS for that driver.
- deleted 11y ago[deleted]
- throwaway_exer 11y ago> subsidised through Obamacare provisions Obamacare mandates access to insurance (from a dwindling group of participating insurers), it is not a direct subsidy. In fact, Obamacare has raised insurance rates for most people, as insurers cancelled most plans because they "were not compatible" with Obamacare, and re-enrolled members at higher rates than before.
- throwaway_exer 11y agoIf payroll taxes are shifted to the driver, then their take-home pay would go down.
- danieltillett 11y agoBy take home pay I mean after all taxes are paid, not what they get at the end of the week in their bank account.
- duaneb 11y agoAlso, they would be liable for the employee's behavior. Which is terrible, economically.
- danieltillett 11y agoAren't they effectively held liable in the court of public opinion which is probably more costly than any legal liability.
- duaneb 11y agoNo, not in the least. People know Uber is an evil company and don't care.