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I think something I should clarify here, and perhaps in the article itself, for HN readers is that this is specifically with respect to contract to hire, non-pr
by andrewmcwatters 4y ago
I think something I should clarify here, and perhaps in the article itself, for HN readers is that this is specifically with respect to contract to hire, non-private business 1099-NEC or W2. The latter of which is already specifically for employees.
If you are a single-member LLC or an agency, your rates are business rates.
For example, my agency charges $175/hr per resource.[1]
That is to say, contract to hire employment is not contracting a software development firm.
[1]: https://www.andrewmcwatters.com/services https://www.andrewmcwatters.com/services
- a-dub 4y agowhat is the difference between contract to hire and business services in the time before the contract is up?
- andrewmcwatters 4y agoIt is a widespread practice in tech that employers will give employees contract to hire agreements, pay them by W-2 with only base pay and no benefits. When the conversion period ends, base pay is cut, and that allocation goes into employee benefits. You're an employee to the IRS the whole time.
- a-dub 4y agook. for passthrough agency or other W-2 co-employment/peo arrangements, what you say makes some sense. for business to business billing it's basically offensive. i'll also note that those passthrough agencies, peos and co-employers can charge up to a 100% markup though. ...and, contract to hire is still just contract, until hire.