Internetworkers: http://www.ibiblio.org/internetworkers/

[Heather Hesketh <heather AT hesketh.com>]

At 04:32 PM 8/14/2000 -0400, Michael S Czeiszperger wrote:
>> 5. How did the debate on "affordable health care" get replaced by
>> "affordable health insurance"? (Seems to me that any fool could figure 

>that
>> any time you add a middleman, the price increases or the quality
>> decreases....)
>>
>
>This is only tangentially related, but I've heard many times that a
>company can take their IT staff, make them employees of a company such
>as EDS or IBM, and save money. How can having the same people working
>through a middleman charging 20-30% overhead save money? I realize that
>you can put service charges on a separate budget than employees, but
>when anyone looks at the bottom line isn't the profit margin less since
>its costing more?

You don't have to pay benefits to contractors, for one thing.

You also don't have the same sort of overhead for payroll. The contract 
firm and/or the contractor becomes responsible for the payroll taxes. Keep 
in mind that employers match the payroll taxes taken out of your paycheck, 
when you're an employee.

Heather

--
Heather A. Hesketh           !       hesketh.com/inc
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