[Jonty30]

An article in the WSJ argued for a third path, making employees entrepreneurs in their positions, to,be paid based on their performance.

[Smokin' Joe]

The people who work with me have their own company, usually a one-person LLC. They contract out their services and perform as a subcontractor. It opens up opportunities to shield income from taxation not present to the average employee, and lets them write off more of their operational expenses than they'd be able to write off on a form 2106.

It is a win-win situation, they carry their own professional liability insurance, etc., cover their own worker's comp, (as do I), and get paid better and faster than the average employee because I can pay them better for their services (lower overhead for me). Checks are issued when they hand me the invoice, so they don't even have the pay period lag most employees have.

[muawiyah]

Or, just pay them in stock.