| Rpruett said: You and the above, completely don't get it. It's oh so painfully obvious. Go start a business and then start talking. SMH. |
I don't think a lot of these posters realise that it's not just a wage that you pay people. There's payroll taxes, training, mandated benefits, paperwork, insurance, etc.
When you hire an individual, you take on all those costs as well as a salary - up to a third of the salary goes in additional taxes alone.
Back in London, if you're a software engineer in the Wharf, you can choose two ways of going about it: as an employee, or as a individual contractor. Being a contractor, you forgo all the mandated benefits, and the employer can skip out on a lot of the taxes. The net result is contractors end up earning 40-50% more than the regular employees. To the employer, the cost is essentially the same whether you're contracted or employed.
