Not good enough. The quality of benefits from Lionbridge or similar companies is much worse than the benefits offered by Microsoft. Microsoft is getting a tax break (they don't pay FICA on health insurance or certain other benefit-based employee compensation) dependent on making those benefits available to all employees; they need to hold up their end of that deal instead of scamming taxpayers by using subcontracting loopholes.
That’s not how W2 contracting works.
LionsBridge is paying FICA, the contractors are considered LionsBridge employees. LionsBridge is passing the cost on to Microsoft. Microsoft is not saving money on FICA.
Not necessarily in this case, but full time employees overindex on the value of company provided benefits. It’s just another part of your compensation. You can get health insurance on the open market, without depending on your employer. You have to set your hourly rate high enough to compensate.
I’ve done W2 contracting, I made damn sure that my hourly rate was high enough to cover the absence of benefits, the lack of paid time off, etc.
In the case of W2 contracting, you can usually buy insurance through your consulting company - full price, pretax. If you are a 1099 contractor you can buy insurance through the exchange and it’s tax deductible.
That’s not how W2 contracting works.
LionsBridge is paying FICA, the contractors are considered LionsBridge employees. LionsBridge is passing the cost on to Microsoft. Microsoft is not saving money on FICA.
Not necessarily in this case, but full time employees overindex on the value of company provided benefits. It’s just another part of your compensation. You can get health insurance on the open market, without depending on your employer. You have to set your hourly rate high enough to compensate.
I’ve done W2 contracting, I made damn sure that my hourly rate was high enough to cover the absence of benefits, the lack of paid time off, etc.
In the case of W2 contracting, you can usually buy insurance through your consulting company - full price, pretax. If you are a 1099 contractor you can buy insurance through the exchange and it’s tax deductible.