4 ms·
> Outsource the lowest paid workers to a subcontractor So, then the sub contractor pays the taxes and invoice you with mark-up? Because those companies have c
by e12e 6y ago
> Outsource the lowest paid workers to a subcontractor
So, then the sub contractor pays the taxes and invoice you with mark-up?
Because those companies have ceos too?
I think this is rather fascinating. Assume a de-facto minimum wage of 10 dollars an hour, 2000 hours/year for 20k/year lower bound. 200 times that is 4M usd/year in compensation for a single individual. Does seem wierd to see such a big difference in campensation. If nothing else, seems to illustrate a broken labour market with horribly skewed bargaining power.
- sokoloff 6y agoI don't see the reason that the contracting firm CEO would likely clear $2M/yr as a low-risk, mostly undifferentiated supplier of office services. (That’s where the markup to the clients comes from, not the tax.) But if the tax does become a problem, split into OfficeServicesA and OfficeServicesB corps and let your clients pick which one they'd like to hire. Or have your spouse or family member do some of the administrative work (for business continuity reasons) and split the comp.