Nov
22
The structural logic is rather compelling. A company can discharge people—and turn around and “hire” them back under other arrangements, as contractors, say. In this process the employer (1) eliminates overhead (space, furniture), (2) no longer needs to pay half of the Social Security tax it pays to full-timers, (3) avoids health insurance contributions, and (4) no longer contributes to retirement plans. It takes a certain amount of finesse to accomplish this. Straight rehiring under contract is prohibited by law, but there are ways. And in this manner the furloughed or the terminated gain compensation once again—but, mind you, at a much lower rate than they enjoyed before.
The Self-Employment Army « LaMarotte

