6 ms·

Employer "benefits" are things that are all freely available a la carte. There's no reason contractors can't buy health insurance from a marketplace or contrib

Employer "benefits" are things that are all freely available a la carte. There's no reason contractors can't buy health insurance from a marketplace or contribute to an IRA and wind up with the same end result. You as a contractor just have to factor those additional costs in to your decision-making process when evaluating compensation packages.

noxxten 9y ago
The "benefit" portion of that statement is that the employers typically take on a portion of that cost so it's reduced for the employee. Have you ever filed taxes as a freelancer? You nearly pay double because you're both the employer AND employee in that situation... The same goes for other benefits as well like healthcare - There are no group discounts when you're the only one getting coverage.
- zip1234 9y ago
  The government provides incentives (tax exemption) for employer provided insurance, which distorts the market. Seems like extending that benefit to freelancers or eliminating it entirely would be extremely helpful. https://www.mercatus.org/publication/tax-exemption-employer-provided-health-insurance https://www.mercatus.org/publication/tax-exemption-employer-...
- mi100hael 9y ago
  Yep, I've been there. Like I said: > You as a contractor just have to factor those additional costs in to your decision-making process when evaluating compensation packages.
- deleted 9y ago
  [deleted]
danjoc 9y ago
>There's no reason contractors can't buy health insurance Likewise, with the individual mandate removed, there's no reason employees can't opt out of health insurance. But in both cases, the pay does not change. If I opt out of health insurance, and save my company hundreds of dollars per paycheck, I do not get a raise in that amount. The incentive then is to accept health insurance as a employee and do without as a contractor. The problem for everyone is uninsured contractors will also have incentive to avoid treatment as long as possible due to the expense. By the time they seek treatment, the cost of treating the problem has ballooned. They won't be turned away, they won't be able to pay, and hospitals won't go out of business. I'll let you guess who ends up paying for the outsized medical bills they generate.
ubernostrum 9y ago
OK, so you be sure, as a lone individual, to tell Uber you'd like to negotiate a higher contract rate with them in order to cover your expenses. And then when they laugh in your face, try it with another company. And another. And another. And let me know how it goes.
- mi100hael 9y ago
  If someone is laughing in your face everywhere you go (especially with unemployment at an all-time low right now) then you probably need to recalibrate your expectations. However I'd venture a guess that most people aren't actually asking for higher rates. Most people do a terrible job negotiating for compensation (and by terrible I mean they don't even try). http://www.kalzumeus.com/2012/01/23/salary-negotiation/ http://www.kalzumeus.com/2012/01/23/salary-negotiation/
  - Chaebixi 9y ago
    > Most people do a terrible job negotiating for compensation (and by terrible I mean they don't even try). He's talking about stuff like Uber. Their whole deal is having a take-it-or-leave it gig-employment offer. They'd laugh in his face if they actually took the time to talk to anyone face-to-face, which they don't.
    - mi100hael 9y ago
      Uber & other app gigs are not about to make up the half of the American workforce that the article discusses. Most jobs, contract or otherwise, still require face-to-face negotiation.
  - spookthesunset 9y ago
    The "gig economy" being discussed isn't highly paid software developers. It's dudes working uber / lyft / postmates. These people have no negotiating power.... you take the gig or you leave it. It is amazing how out of touch people in the software echo chamber are....

noxxten 9y ago

The "benefit" portion of that statement is that the employers typically take on a portion of that cost so it's reduced for the employee. Have you ever filed taxes as a freelancer? You nearly pay double because you're both the employer AND employee in that situation... The same goes for other benefits as well like healthcare - There are no group discounts when you're the only one getting coverage.

zip1234 9y ago
The government provides incentives (tax exemption) for employer provided insurance, which distorts the market. Seems like extending that benefit to freelancers or eliminating it entirely would be extremely helpful. https://www.mercatus.org/publication/tax-exemption-employer-provided-health-insurance https://www.mercatus.org/publication/tax-exemption-employer-...
mi100hael 9y ago
Yep, I've been there. Like I said: > You as a contractor just have to factor those additional costs in to your decision-making process when evaluating compensation packages.
deleted 9y ago
[deleted]

danjoc 9y ago

>There's no reason contractors can't buy health insurance Likewise, with the individual mandate removed, there's no reason employees can't opt out of health insurance. But in both cases, the pay does not change. If I opt out of health insurance, and save my company hundreds of dollars per paycheck, I do not get a raise in that amount. The incentive then is to accept health insurance as a employee and do without as a contractor. The problem for everyone is uninsured contractors will also have incentive to avoid treatment as long as possible due to the expense. By the time they seek treatment, the cost of treating the problem has ballooned. They won't be turned away, they won't be able to pay, and hospitals won't go out of business. I'll let you guess who ends up paying for the outsized medical bills they generate.

ubernostrum 9y ago

OK, so you be sure, as a lone individual, to tell Uber you'd like to negotiate a higher contract rate with them in order to cover your expenses. And then when they laugh in your face, try it with another company. And another. And another. And let me know how it goes.

mi100hael 9y ago
If someone is laughing in your face everywhere you go (especially with unemployment at an all-time low right now) then you probably need to recalibrate your expectations. However I'd venture a guess that most people aren't actually asking for higher rates. Most people do a terrible job negotiating for compensation (and by terrible I mean they don't even try). http://www.kalzumeus.com/2012/01/23/salary-negotiation/ http://www.kalzumeus.com/2012/01/23/salary-negotiation/
- Chaebixi 9y ago
  > Most people do a terrible job negotiating for compensation (and by terrible I mean they don't even try). He's talking about stuff like Uber. Their whole deal is having a take-it-or-leave it gig-employment offer. They'd laugh in his face if they actually took the time to talk to anyone face-to-face, which they don't.
  - mi100hael 9y ago
    Uber & other app gigs are not about to make up the half of the American workforce that the article discusses. Most jobs, contract or otherwise, still require face-to-face negotiation.
- spookthesunset 9y ago
  The "gig economy" being discussed isn't highly paid software developers. It's dudes working uber / lyft / postmates. These people have no negotiating power.... you take the gig or you leave it. It is amazing how out of touch people in the software echo chamber are....