Independent Contractors like to be “independent” for various reasons including:
- they can write off all their expenses
- they are free to work where and when they want
- they can make higher hourly rate than if they were a corporate employee doing the same work
- etc., etc.
But they do not like certain things that hold them up (and make their life more difficult). These tasks keep them away from the work they know and love, and waste their valuable time.
- Not being able to get on a group health insurance plan (sometimes they may have some medical issue that denies them insurance altogether). Dealing with insurance brokers altogether is burdensome (Workers Comp, Liability, Errors and Omissions too).
- They hate the administrative junk that goes along with a business (invoicing, collections, taxes, insurance brokers, etc.)
- They lose some contracts because a potential client company can’t bring them on as a 1099 (due to compliance reasons).
So…companies like Rothwell International takes care of all of these issues for the Independent Contractor. But to do that, the ‘Employer of Record” model is needed. But we don’t care how many clients they have streaming through us, they find their own contracts, they set their own rates, they set their own work schedules, etc.
Rothwell uses an IRS-approved Accountable Plan for payroll…which allows the consultant to deduct all of their business-related expenses from their taxable income.
Most payroll providers don’t allow the consultant to have this level of freedom (especially with allowing all of their business-related expenses to be written off and saving all of that tax).
Plus, we don’t charge any margin or fee or hourly rate to a client company (this is a huge difference between us and a payroll provider). Our fee to the contractor is $75/week admin fee (we also have a sliding scale statutory fee that covers the overhead we endure for the consultant’s tax burden that we bear). The tax savings themselves pay for this fee alone.
Interested in checking this model of doing business out more closely? Go to: www.BenefitsForConsultants.com and let us know that you want a “Free Assessment.”