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Employee transaction costs are not lower than contractors. Employers typically pay vacation, sick pay, workers comp, health care, 1/2 social security plus othe
by troyk 16y ago
Employee transaction costs are not lower than contractors. Employers typically pay vacation, sick pay, workers comp, health care, 1/2 social security plus other payroll taxes, equipment, office space, and incur certain liabilities for the employee.
- tbrownaw 16y agoAll those things still have to be paid for by someone when you hire contractors. Which is probably why I always hear about contractors getting seemingly-absurd high hourly rates, if it didn't all come out about even, either we'd all be contractors or nobody would choose to be a contractor. The transaction costs here are things like all the negotiation that has to go in to getting anything done with contractors every time you want something done.