3 ms·

I think the crux is here (from their explanation post): > extract the most valuable 10 hours/week ... > ... don’t pay payroll taxes, don’t pay bonuses, and do

I think the crux is here (from their explanation post): > extract the most valuable 10 hours/week ... > ... don’t pay payroll taxes, don’t pay bonuses, and don’t need to offer benefits How they define a "fractional" is almost 1:1 the definition of false self-employment, which is illegal in many parts of Europe, as it fulfils all criteria of normal employment without any of the security for the employee and circumvention of paying for social safety.

philip1209 2y ago
Europe isn’t known for being progressive.
- fastasucan 2y ago
  Not if you define progressive as allowing exploitation of people. But if you follow the normal definitions of the word it is.
  - ponector 2y ago
    And don't forget to put 25% progressive tip to everything! I've recently heard some people are paying tips to the collectors company who while paying minimum monthly payment to the debt. How progressive!
jtwaleson 2y ago
I'm a Fractional CTO in NL. We're quite a bit more expensive than regular employees or even freelancers (per hour), so I think they mention the lack of payroll taxes, bonuses etc to persuade companies that it's less expensive than it appears. We're still paying taxes, the only difference is that the client isn't paying for it, and maybe there is a bit of a discount for starters. As a fractional/freelancer, I enjoy the freedom and mutual expectation that I'm in this for the money and for the short term. (In my case it gives me the resources to bootstrap my own product company). In NL the regulations for false self-employment (enforcement kicks in January 1st) is primarily aimed at low-wage jobs like meal delivery etc. High paid professionals with multiple clients per week (like most fractionals are) are not the target.
- MichaelZuo 2y ago
  > We're still paying taxes, the only difference is that the client isn't paying for it, and maybe there is a bit of a discount for starters. How can the client not be paying for it somehow?
  - jtwaleson 2y ago
    They pay a higher hourly wage. As an entrepreneur you typically you see "monthly salary of employee is X" and translate that to "actual cost is X*1.4". With fractionals you don't have to do that. The hourly wage is simply what you pay.
    - MichaelZuo 2y ago
      Bundling things together still means they are paying for it with one degree of separation…?
      - jtwaleson 2y ago
        Yes they are, but I think the blog post is meant to educate the companies that they don't have to mentally multiply the price again. What you see is what you pay.
        tbird24 2y ago
        This is exactly correct. We're not saying somehow somebody is cheating the system (e.g. by not paying taxes), we're showing how it's a lot more transparent.
  - ponector 2y ago
    Client is not paying taxes, only for my services. What if I decide to not pay taxes myself and pocket all the money?
    - jtwaleson 2y ago
alberth 2y ago
Isn’t this just a 1099 contractor.

philip1209 2y ago

Europe isn’t known for being progressive.

fastasucan 2y ago
Not if you define progressive as allowing exploitation of people. But if you follow the normal definitions of the word it is.
- ponector 2y ago
  And don't forget to put 25% progressive tip to everything! I've recently heard some people are paying tips to the collectors company who while paying minimum monthly payment to the debt. How progressive!

jtwaleson 2y ago

I'm a Fractional CTO in NL. We're quite a bit more expensive than regular employees or even freelancers (per hour), so I think they mention the lack of payroll taxes, bonuses etc to persuade companies that it's less expensive than it appears. We're still paying taxes, the only difference is that the client isn't paying for it, and maybe there is a bit of a discount for starters. As a fractional/freelancer, I enjoy the freedom and mutual expectation that I'm in this for the money and for the short term. (In my case it gives me the resources to bootstrap my own product company). In NL the regulations for false self-employment (enforcement kicks in January 1st) is primarily aimed at low-wage jobs like meal delivery etc. High paid professionals with multiple clients per week (like most fractionals are) are not the target.

MichaelZuo 2y ago
> We're still paying taxes, the only difference is that the client isn't paying for it, and maybe there is a bit of a discount for starters. How can the client not be paying for it somehow?
- jtwaleson 2y ago
  They pay a higher hourly wage. As an entrepreneur you typically you see "monthly salary of employee is X" and translate that to "actual cost is X*1.4". With fractionals you don't have to do that. The hourly wage is simply what you pay.
  - MichaelZuo 2y ago
    Bundling things together still means they are paying for it with one degree of separation…?
    - jtwaleson 2y ago
      Yes they are, but I think the blog post is meant to educate the companies that they don't have to mentally multiply the price again. What you see is what you pay.
      - tbird24 2y ago
        This is exactly correct. We're not saying somehow somebody is cheating the system (e.g. by not paying taxes), we're showing how it's a lot more transparent.
- ponector 2y ago
  Client is not paying taxes, only for my services. What if I decide to not pay taxes myself and pocket all the money?
  - jtwaleson 2y ago

alberth 2y ago

Isn’t this just a 1099 contractor.