PSC Blog Train

Being an independent contractor charging the "highly over compensated $100 per hour" as you put it is not always the easiest way to earn a living.  
 
You seem to forget that there is no stability, no benefits and no employment insurance.  
 
Also keep in mind that some insurers do not want to insure independent contractors ( or want to charge an exorbitant amount ) for contractors that may take on contracts that assume more risk. 
 
Painting everyone with the same brush is just bad practice.

Michele, 
 
Thanks for jumping on the PSC Train. I appreciate your position and having worked as and IC in my career, I understand. However, a couple of things to clarify.  
 
The word <b"over"b> was not used when describing contractor pay. I feel that everybody has the right to earn what is fair and reasonable for the expertise and work they perform. The statement in the text merely refers to <b"highly compensated"b> and I think $100/hr is a high compensation in any economy. 
 
The risks you take as an IC to work in your chosen line is exactly that, your choice. You could work for an organization that might, and I use "might" loosely, give you stability and would provide you with insurances. Also, depending on what country you are working, because I noticed the ".ca" on your email I am assuming you are in Canada, you have the benefit of national health-care to cover your insurance needs. 
 
If annual liability insurance premiums cost are $5K per year and you are on a $200K in revenue, we are looking at a business expense that is 2.5% of annual sales. Also, that expense is deductible from your business taxes. If you were to accidentally make a mistake and were uninsured, the company which experienced the damages, if legally granted, could take your personal assets to recover damages or their insurance company could if they paid out on those damages on the company's behalf, if they chose too. 
 
Lastly, the corporation, as you saw from the article, takes on a big risk by employing IC's who do not have insurances and are exposed to tax liabilities if the IC status is considered to be illegitimate by the government. 
 
With all this said, I am not trying to "paint all IC's with the same brush". Many of the IC's deployed carry insurances and renew them every year. What I am advocating is for both the contractor and the company's who use IC's protect themselves with basic insurances. This is a wise decision for all parties involved.

Ted,  
 
Also having worked on both sides of the employment fence, I too see your position. However, sitting on the employers side as a supply chain professional there is always a risk assessment that needs to be taken into account. To decide to take the risk as an employer may also provide benefits. Sometimes the expertise of an individual is worth the risk. 
 
Not all independent contractors are in such a high income bracket as they choose to work less time but using very skilled expertise to earn their living. Perhaps the insurers could provide insurance at a reduced rate for those who choose to live a more balanced lifestyle without the big expense of a full time policy. 
 
Thanks for your response and thoughts these discussions are always thought provoking. 
 

Michele, 
 
Your points are good and we never intend for any of our comments and/or opinions to be without exception. We know there are many levels of employment and positions. What we try to do is to present best practices and try to insure that all parties understand all perspectives. 
 
I agree these are always thought provoking and encourage you to come back and visit our site. We appreciate you taking the time to continue to share your opinions. 
 

The concerns expressed on both sides are legitimate. Let us not forget though that IC's, to truly build a business, probably need to spend one day marketing their services for every 2 days worked. When also considering the costs of LTD and health insurance, the hourly rates begin to look a lot more reasonable. We all know the benefits to the corporation of having flexible workforces - all benefits are offset by risk in the system, and the IC absorbs that risk, which must be reflected in the rate in an entrepreneurial environment.