[Still Thinking]

That’s only true if you pay them the same per hour as a contractor without bene’s as you would as an employee with them. If you pay them a rate that includes the bene’s, as you should, it actually vests them with more options, more power, and more choices, and less paperwork and risk for you. I think everyone in the land except mamby pamby wussy pussy Democrats should be contractors.

[Myrddin]

During the 1996-1998 time frame, I switched from full time to "consulting employee" status at my current company. My full time employer offered me a much better salary, benefits, stock options and fairly interesting work. The status change resulted in a payout of my accrued vacation time and a loss of benefits. My compensation was changed from salaried to "hours worked". No hours were scheduled. I could work zero to as much as requested. The hourly rate was increased by about 50% over the equivalent pay for salaried staff. That was to compensate for dropping medical benefits, vacation and sick pay. When I returned to full time status in 1998, my compensation package was restored with full benefits. Just having a private office again was reason enough to return. Working at an internet startup isn't all it's cracked up to be. The 16 hour days, 7 days a week were just not worth the probability of a life long handicap from repetitive stress injuries.