1/4/13
Two astute readers challenged the Insider's analysis of the proposed pay on an annualized basis and pointed out a contractor typically pays their own benefits, etc.
Maybe these two should re-read the contract. See previous blog for more and a link.
The contract says $70 per hour for 25 to 30 hours per week of work. Assuming two weeks' vacation is unpaid, and 30 hours per week, the total cost is $105,000. This is more than the $95,000 described as a not-to-exceed figure in the contract. If the work performed averages more than 27 hours per week, the $95,000 will be exceeded and the contract says there needs to be a negotiation about exceeding this amount. Suppose more than 27 hours per week, on average, is needed to get the job done. Will Council say stop work at $95,000? The Insider thinks not.
If one reads the Cost of Service clause in the contract one sees that the City has to pay a monthly insurance "stipend." Although the amount is not specifically listed it's to be what the City pays for insurance for other employees (something just under $1000 is a likely amount). So, there are benefit costs in addition to the $70 per hour.
Happy Reading!
The Insider
The health "stipend" should be cut out. In fact, he probably will not use it for health insurance, but for added income. Another 12 grand a year.
ReplyDeleteAnd, as an IC, he can deduct right off the top any expense remotely related to his work.
Typical public-gouging pay package.