Sister Sword of Desirable Mindfulness (fiberaddict) wrote,
Sister Sword of Desirable Mindfulness
fiberaddict

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Shower thoughts....

because it's me. :heh:

So. A few weeks ago, the husband and I were discussing all the empty office buildings around, due to "WFH", and the implications for the economy. (Sucks to be a commercial landlord right now....if everyone is working from home, they have LOST a ton of money. Ex: My former employer had a very, very small office space in a strip mall (800 s/f, IIRC)....$1500/month rent, + insurance, + utilities. They're shut down, now, as are EVERY OTHER OFFICE in that building. 30 or so offices. We had the smallest office space....do the math.)

Anyway. I was thinking about that this AM, and realized something. EVERYONE currently working from home.....IF they are using their own, personal computer, are, technically......CONTRACT LABOR, not employees.

This should.....worry you. Because, as a contractor, the company does not pay their portion of Federal withholding (including Social Security and FICA), nor are they required to pay for insurance. Or vacation/sick days. A smart accountant.......well, switching over would save the companies a ton of money.

IF you bought a new laptop/are using your own computer - and the company didn't reimburse you; and
IF you are not being reimbursed for the extra electricity/water/use of your WFH office space/office supplies...

you are, TECHNICALLY, a contract worker - NOT an employee.

This......has a bunch of implications for you, the worker. IF the company realizes this, and decides to *act* on it.......

You will owe 100% of the federal withholding, instead of the 50% you currently have withheld from your paycheck (the employer pays the other 50% and gets to take the write off.) IF you don't pay quarterly, you will owe penalty and interest.....:sigh: It also means you can be let go with no reason - they just drop your "contract" - which doesn't have to be written, BTW. Husband is a contract electrician....he can be let go at anytime, with no repercussions. He can also quit at any time, with no repercussions. He has no written contract - and I never have, either.

Honestly, I'm surprised it took me this long to think of this. IF a company can make a profit without having to pay rent/taxes/utilities on their office space......why wouldn't they? IF they can also save money by using contract labor instead of employees....again, why not? From the company viewpoint, it's cheaper to use contractors instead of having employees that will expect things like: IRA's, 401k's, vacation pay, sick pay.....health insurance........from a fiscal standpoint, it makes sense. Save money - which is what every CFO wants, because saving money = increased profits.
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