(05-16-2021, 07:43 PM)hazard Wrote: For contractors you estimate on the basis of either an equivalent in company position (if any exists) or presuming market equivalent wages (if possible) or simply and brute force calculating the effective wage after accounting for taxes and other stuff companies pay for by either law or custom for their employees.
I'd prefer to make it to where it specifically weights in favor of having actual on-the-books employees versus contractors for determining maximum pay. While contractors are a legitimate form of doing business (temporary needs like construction or other one-off works for hire), they can and are used to get around certain other things in terms of things like paying benefits and the occasional "I'd prefer to make sure this employee works out before having to pay out for things like unemployment insurance", so make it so it's really less desirable unless you really do have a temporary thing that needs to get done (like office renovations, etc). In other words, yes, you might be able to effectively hire contractors instead of full time employees, but it should shove the effective maximum monthly pay for the CEO and other upper management down in the process if they attempt to use it to cut the amount the company pays out, preferably by a noticeable amount.
"You know how parents tell you everything's going to fine, but you know they're lying to make you feel better? Everything's going to be fine." - The Doctor