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Re: The saga ended (or is it continuing? (was Re: A sticky contractor situation: no pay yet?)
Subject:Re: The saga ended (or is it continuing? (was Re: A sticky contractor situation: no pay yet?) From:"Jeanne A. E. DeVoto" <jaed -at- jaedworks -dot- com> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Mon, 21 Jul 2003 11:26:13 -0700
At 9:43 AM -0700 7/21/03, Chuck Martin wrote:
[in response to Andrew's suggestion]
>> Rather than have them do all the leg work for you, take a contract
>> to >them. Go out and get contract work and then bring the contract
>> to an agency. If you call up an agency and say "I have a contract gig
>> and I need an agency to carry the contract for me, would your firm
>> do that for a 10% margin?"
>
>In such a situation, is it better to have contacts ata an agency or two that
>I can call shoudl I get such a contract, or is a simple "cold call" going to
>end with a similar result? And shoudl the margin vary depending on whether I
>want to do 1099 or W-2/4?
It doesn't really matter. In my experience, agencies are happy to take on
such a contract. Their percentage needs to cover their payroll taxes, but
the percentage over that is more or less free money for them (their
accounting services are already a sunk cost and adding a contract costs a
pretty negligible amount). You've already done most of the work by landing
the contract.
Yes, the margin will vary depending on whether you're 1099 or W-2, because
the agency's payroll tax liability depends on this. (If you're 1099, they
pay, I believe, nothing, so their margin after their accounting costs is
pure profit. But if you're W-2, they pay half of Social Security, plus
unemployment, disability, possibly other things, and all this has to come
out of their percentage.)
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