NYCPHP Meetup

[Tim Sailer]

On Thu, Jan 18, 2007 at 03:29:20PM -0500, Peter Sawczynec wrote:
> The corp budget for contractors often comes from a separate line item
> budget than the budget that pays for full-timers. Also, using
> contractors keeps the corp off the hook for your medical, vacation,
> holiday and long-term retirement. Plus, the corp only use contractors
> when needed, where needed. It definitely makes financial sense to the
> corp to use contractors. Peter

Right. The only time it makes sense to hire fulltime instead of 1099
is if the job will span more than a year. Under that, the job is over,
the contract labor force moves on. Otherwise, you have to fire/lay off, 
you rack up your unemployment insurance costs, etc. Messy, expensive.

Tim

PS: Yes, employers actually have to pay into the unemployment insurance
pot and have to hope they never fire anyone that will try to collect.
When claims are made against the escrow, the employer has to start paying
a higher rate, so you cost them money even after you are laid off.

-- 
Tim Sailer <sailer at bnl.gov> 
DoE Intelligence and Counterintelligence - Cyber Division
Northeast Regional Counterintelligence Office
Brookhaven National Laboratory  (631) 344-3001