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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 Fee
by 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 agoCruft 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 agoThis does not include the health insurance / overtime payments. The 28% is vendor fees, onboarding and recruiting costs.