@Dashrender said:
@IRJ said:
@Dashrender said:
I had a friend that worked a consulting company - that consulting company (for lack of a better term) rented out employees to other business for 6 month to 1 year contracts. Who does that employee work for? the consulting company or the renting company?
That is basically what I did. It is different than working for a MSP, because ALL your daily tasks come from COMPANY1. The staffing company just wrote the paychecks. COMPANY1 paid Staffing company and the Staffing company wrote a check to me for 70% or whatever they were paid and kept the 30%. (I am guessing on the numbers, but I would suppose it was something similar to that.). I never talked to the staffing company, my hours, tasks, and everything else about my job was approved by COMPANY1.
And things just keep getting weirder.
So my employer, a medical office, considered laying off their entire workforce, and hiring a company that would employ the entire staff, and staff them back to my company.
The purpose for doing this was to reduce the cost of health insurance to the company.Medical offices pay very high medical insurance rates (I'm guessing numbers wise their employees use medical insurance more than the norm, so the rates reflect that).
The use of a staffing company is a loophole that could have been used to have the appearance that these employees worked for a non medical office, thus lowering the rates.
The staffing company is who would actually be providing all benefits, but of course all of those expenses would be passed back to the medical office.
Discuss.
Capital does not like to be wasted. It's convoluted yes, but MUCH less so than the general day to day hoops tossed at medical offices in dealing with insurance companies and government reimbursement programs (where they actually get 25 to 50 cents on their billed dollars.)
