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> The mass market model doesn't work when you have to charge 40% more just to cover the additional costs in benefits, overtime, taxes, hr etc. Perhaps there w

> The mass market model doesn't work when you have to charge 40% more just to cover the additional costs in benefits, overtime, taxes, hr etc. Perhaps there was no model to begin with then, no? That 40% doesn't magically disappear. The cost is borne by the "contractors" themselves. In software development that usually means charging a lot more than a salaried employee costs because you aren't guaranteed work all the time and you need to cover your own benefits. Building a business on forcing people into slavery would be profitable in some circumstances. Building a business on finding free gold coins buried in the ground would definitely be profitable. Doesn't mean you have a sustainable business.

seizethecheese 10y ago
If there are enough people willing to work as contractors, then there is a business model.
- randycupertino 10y ago
  Oftentimes they're just exploiting uneducated and naive people who work these jobs because they don't know any better, not because they want to be contractors.
tejaswiy 10y ago
1099 costs breakdown: 63.2% Caregiver, 26.5% Margins, ~10% Misc W2 costs breakdown: 56.8% Caregiver, 1% Margins, 18% Onboarding, 7% Recruiting, 3% Merchant Fees, 15% (Benefits, Taxes, Benefits). If we take their data at face value, it looks like about 28% of the cost is Cruft picked up from the W2 model and is not benefiting either the company or the caregiver.
- ubernostrum 10y ago
  Cruft picked up from the W2 model and is not benefiting either the company or the caregiver Yes, I imagine those poor, hapless caregivers saying things like "My lifelong dream has been to work 80 hours a week with no overtime and no health insurance, and this damn nanny-state government is getting in the way of my achieving it!" There's a reason why the 1099 racket is getting shut down, and it's because abused and exploited workers don't have that as their lifelong dream.
  - tejaswiy 10y ago
    This does not include the health insurance / overtime payments. The 28% is vendor fees, onboarding and recruiting costs.

seizethecheese 10y ago

If there are enough people willing to work as contractors, then there is a business model.

randycupertino 10y ago
Oftentimes they're just exploiting uneducated and naive people who work these jobs because they don't know any better, not because they want to be contractors.

tejaswiy 10y ago

1099 costs breakdown: 63.2% Caregiver, 26.5% Margins, ~10% Misc W2 costs breakdown: 56.8% Caregiver, 1% Margins, 18% Onboarding, 7% Recruiting, 3% Merchant Fees, 15% (Benefits, Taxes, Benefits). If we take their data at face value, it looks like about 28% of the cost is Cruft picked up from the W2 model and is not benefiting either the company or the caregiver.

ubernostrum 10y ago
Cruft picked up from the W2 model and is not benefiting either the company or the caregiver Yes, I imagine those poor, hapless caregivers saying things like "My lifelong dream has been to work 80 hours a week with no overtime and no health insurance, and this damn nanny-state government is getting in the way of my achieving it!" There's a reason why the 1099 racket is getting shut down, and it's because abused and exploited workers don't have that as their lifelong dream.
- tejaswiy 10y ago
  This does not include the health insurance / overtime payments. The 28% is vendor fees, onboarding and recruiting costs.