Re: Billing Problems with Corporate Client

[SLSTAGGS <SLSTAGGS -at- AOL -dot- COM>]

In a message dated 98-01-07 16:02:32 EST, jleer -at- ltc -dot- mv -dot- com writes:

<<However, your comments regarding working through an agency is more than
 simply whose name is being used. It has tax consequences. Almost always the
 agency requires that you work under a W2 arrangement. Whereas, 1099 terms
 allow you to get the full fee and pay taxes per your own arrangement with
 the IRS.>>

Good point. Agreeing to work through an agency is usually a negotiating
concession on my part because of the different (and often less favorable) tax
situation. It makes things easier for the client, and I'll do it if it's cost-
effective in the long run. And if it'll help get me (as a sole proprietor) on
the fabulous "list."

In the earlier post, I didn't understand the client's rationale for requesting
a 3% decrease in billing rate if they contracted through an agency. It seems
to me that, if anything, the client should be open to a slightly higher rate
because of the agency arrangement.

<<P.S. I would like to hear more from other members of the list regarding
getting on a company's approved vendor list.>>

In my experience it varies by company.

One company, they automatically put you on the list if any manager in that
company (say, one of your old clients from way back...) hires you. You don't
have to jump through any hoops - just be officially "approved"  by that one
manager.

Other companies, you have to descend into the seventh circle of hell just to
have a chance to grab the brass list ring. And once you do get on the list,
you're tied to a strict set of project procedures - all of which favor the
client, of course!

Some companies just do not put sole proprietorships on their vendor lists, but
this is often unstated to give the appearance of fairness.

Susan