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Re: I'm furious...

Subject: Re: I'm furious...
From: Mike Starr <mike -at- writestarr -dot- com>
To: "techwr-l -at- lists -dot- techwr-l -dot- com" <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Fri, 09 Jan 2015 13:22:49 -0600

In the US, contractors typically work as W-2 employees of the agency. The agency is then obligated to pay the Social Security withholding (which used to be 7.5% of the employee's wages and the employee pays the same amount through withholding) and I believe in most cases they're also required to pay a certain amount to the unemployment compensation fund of the employee's state of employment. These payments come out of the difference between the amount the agency bills the client and the amount the agency pays the employee, so that difference is not all profit for the agency.

This is beneficial to me as a contractor because when the assignment ends, I can file for unemployment compensation... that helps me pay the bills between assignments. Were I a 1099 contractor, I would be an independent contractor and would not be eligible for unemployment compensation, there would be no withholding of state and federal income taxes, and I would have to pay self-employment taxes and the full 15% Social Security withholding with my annual tax filing. There's probably other things I'm not really familiar with but those are the basics that I'm aware of.

Best Regards,

Mike
--
Mike Starr, Writer
Technical Writer - Online Help Developer - WordPress Websites
Graphic Designer - Desktop Publisher - Custom Microsoft Word templates
(262) 694-1028 - mike -at- writestarr -dot- com - http://www.writestarr.com
President - Working Writers of Wisconsin http://www.workingwriters.org/

On 1/9/2015 12:19 PM, Shawn wrote:

In all the years I have done contract work and having about six agencies, represent me at different times, I have never encountered this situation. It has always been understood that a recruiter will only submit my application to the positions I have discussed and authorized.

How does the recruiter even know of your availability and whether or not you agree to the work and the rate?

> (basically, he tells me that they'll only make maybe 50Â per hour on me).

I call B.S. on that statement! This guy is clearly lying!

Or... maybe it is different in the U.S.? In Canada, agencies typically make around 45% of what the contractor is paid. The most outrageous agency fees was during my first contract job where the agency took 68%. I was shocked when my manager told me what they were really paying for my services! Thankfully, those crooks are out of business now.


Good luck, I hope you get the contract.

Best regards,
Shawn
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Follow-Ups:

References:
Interactive PDFs from Word -- best solution to a painful process?: From: ryan . minaker
RE: Interactive PDFs from Word -- best solution to a painful process?: From: Dan Goldstein
I'm furious...: From: Mike Starr
Re: I'm furious...: From: Shawn

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