With the rising cost of employees and the govt mandating health insurance... | TigerDroppings.com

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Robin Masters
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Birmingham
Member since Jul 2010
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With the rising cost of employees and the govt mandating health insurance...


Will we see large companies move to strictly contract labor? Even for middle management and sales.
Seems easier all the way around and much more efficient. Maybe this is more for the money board but I'm curious to hear what you guys/girls see when you look in you crystal ball.







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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
294043 posts

re: With the rising cost of employees and the govt mandating health insurance...


i don't see how this isn't the smart way to do it

lower your FICA burden and eliminate any responsibility of benefits

also, it's a way to have workers that likely won't qualify to your 30 for obamacare. this is likely going to be a huge area of law the next 10 years (unless they just converge with the IRS rulings, which they may)






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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts

re: With the rising cost of employees and the govt mandating health insurance...


quote:

Will we see large companies move to strictly contract labor? Even for middle management and sales. Seems easier all the way around and much more efficient. Maybe this is more for the money board but I'm curious to hear what you guys/girls see when you look in you crystal ball.


It's not that simple. There are TONS of cases (mainly in the tax area) which "reassigns" independent contractors as employees. As I recall, there's a 14 part test (or something like that) to determine if a person is "really" an employee -- the main part of the test being the level of control exerted by the employer.

So, it's just not as easy as saying -- "O.K., you are all now independent contractors -- Voilà!"






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elposter
Alabama Fan
Member since Dec 2010
7825 posts
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re: With the rising cost of employees and the govt mandating health insurance...


quote:

Will we see large companies move to strictly contract labor? Even for middle management and sales.


You are going to have a tough time convincing the IRS that your managers are contractors and not employees. IRS doesn't really care what you call them. If they act like employees by the IRS's definition, they are employees. Companies already try to do this and if they do it wrong and get busted by the IRS they have hell to pay.

You can do this to some extent and I think more and more companies will try, but you better believe the new army of IRS agents will be all over this.






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N.O. via West-Cal
LSU Fan
New Orleans
Member since Aug 2004
4131 posts

re: With the rising cost of employees and the govt mandating health insurance...


"It's not that simple. There are TONS of cases (mainly in the tax area) which "reassigns" independent contractors as employees. As I recall, there's a 14 part test (or something like that) to determine if a person is "really" an employee -- the main part of the test being the level of control exerted by the employer."

It's not just in the tax area, but I agree. Very common in various contexts in employment law, too. The courts will disregard the parties' designations in a heartbeat.






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
294043 posts

re: With the rising cost of employees and the govt mandating health insurance...


quote:

The courts will disregard the parties' designations in a heartbeat.

oh for sure

industry isn't silly. they know how to maximize their's. they're going to get creative with how they handle companies within the conglomerates, duties, roles, etc of contractors/employees. that's why i said this is going to take years to have the courts work it out






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N.O. via West-Cal
LSU Fan
New Orleans
Member since Aug 2004
4131 posts

re: With the rising cost of employees and the govt mandating health insurance...


The incentives for noncompliance are going to be incredibly strong. I really believe we are going down the wrong path, but I suppose the voters have spoken.





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Aristo
LSU Fan
Baton Rouge
Member since Jan 2007
2843 posts

re: With the rising cost of employees and the govt mandating health insurance...


Who authored the healthcare tax?





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davesdawgs
Georgia Fan
Georgia
Member since Oct 2008
16715 posts

re: With the rising cost of employees and the govt mandating health insurance...


quote:

Who authored the healthcare tax?


Basically Obama with Dem control in the Senate and the House of Representatives. How it was passed will go down in history as one of the greatest manipulations and misrepresentations by Democrats in Congress ever. LINK

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The Senate failed to take up debate on the House bill and instead took up H.R. 3590, a bill regarding housing tax breaks for service members.[180] As the United States Constitution requires all revenue-related bills to originate in the House,[181] the Senate took up this bill since it was first passed by the House as a revenue-related modification to the Internal Revenue Code. The bill was then used as the Senate's vehicle for their health care reform proposal, completely revising the content of the bill.[182] The bill as amended incorporated elements of earlier proposals that had been reported favorably by the Senate Health and Finance committees.






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