3 ms·

Um, what exactly is the difference between self-employed person paying their healthcare insurance, and someone being employed and the company paying their insur

Um, what exactly is the difference between self-employed person paying their healthcare insurance, and someone being employed and the company paying their insurance? As long as the self-employed person doesn't pay tax on their insurance (which AFAIK they don't), it is exactly the same thing.

kuschku 9y ago
If the self-employed person can’t afford their own insurance, but their employer doesn’t fund it for them, they often end up without insurance – and if they need to get something done anyway, society has to pick up the bill.
- Anderkent 9y ago
  Self-employed people pay their NHS contributions the same way that companies pay for them. It's not a question of can/can't afford, it's a % of your earnings. https://www.gov.uk/self-employed-national-insurance-rates https://www.gov.uk/self-employed-national-insurance-rates
  - youngtaff 9y ago
    Apart from their not NHS contributions as National Insurance isn't a hypothecated tax
    - Anderkent 9y ago
      It's the closest there is to 'medical insurance paid by employer'. OR what do you think grandparent means when they say 'if the self-employed person can’t afford their own insurance, but their employer doesn’t fund it for them'?
      - kuschku 9y ago
        The gig economy isn’t just an issue in the UK – the example I had used was Germany (which I had literally mentioned in my original comment), where exactly that is happening.
pjc50 9y ago
Health insurance is irrelevant to the discussion in the UK so long as the NHS exists. What is relevant is NI ("national insurance"), which pays for a bunch of unemployment and similar benefits: https://www.turn2us.org.uk/Benefit-guides/National-insurance-contributions-(NIC)/What-benefits-do-my-national-insurance-contributio https://www.turn2us.org.uk/Benefit-guides/National-insurance... What is also relevant is driver liability insurance - normally if you take paying passengers it invalidates your insurance, so commercial drivers either need to be insured by their company or pay more for correct insurance.
- Anderkent 9y ago
  OK, but the idea is the same. You could have the big corporation pay the employed person X and the car insurance company Y. Or you could have the big company pay the self-employed person X+Y, and self-employed person pays the car insurance company Y. If the big company is not willing to pay X+Y to the self-employed guy, they won't be willing to spend X+Y on an employee. The only difference is if the big company can get better rates on the relevant goods than a self-employed guy.

kuschku 9y ago

If the self-employed person can’t afford their own insurance, but their employer doesn’t fund it for them, they often end up without insurance – and if they need to get something done anyway, society has to pick up the bill.

Anderkent 9y ago
Self-employed people pay their NHS contributions the same way that companies pay for them. It's not a question of can/can't afford, it's a % of your earnings. https://www.gov.uk/self-employed-national-insurance-rates https://www.gov.uk/self-employed-national-insurance-rates
- youngtaff 9y ago
  Apart from their not NHS contributions as National Insurance isn't a hypothecated tax
  - Anderkent 9y ago
    It's the closest there is to 'medical insurance paid by employer'. OR what do you think grandparent means when they say 'if the self-employed person can’t afford their own insurance, but their employer doesn’t fund it for them'?
    - kuschku 9y ago
      The gig economy isn’t just an issue in the UK – the example I had used was Germany (which I had literally mentioned in my original comment), where exactly that is happening.

pjc50 9y ago

Health insurance is irrelevant to the discussion in the UK so long as the NHS exists. What is relevant is NI ("national insurance"), which pays for a bunch of unemployment and similar benefits: https://www.turn2us.org.uk/Benefit-guides/National-insurance-contributions-(NIC)/What-benefits-do-my-national-insurance-contributio https://www.turn2us.org.uk/Benefit-guides/National-insurance... What is also relevant is driver liability insurance - normally if you take paying passengers it invalidates your insurance, so commercial drivers either need to be insured by their company or pay more for correct insurance.

Anderkent 9y ago
OK, but the idea is the same. You could have the big corporation pay the employed person X and the car insurance company Y. Or you could have the big company pay the self-employed person X+Y, and self-employed person pays the car insurance company Y. If the big company is not willing to pay X+Y to the self-employed guy, they won't be willing to spend X+Y on an employee. The only difference is if the big company can get better rates on the relevant goods than a self-employed guy.