A Possible Enormous Opportunity

The new Health Care legislation has passed. Wading through all the rhetoric, spin and misinformation, there will be opportunities to substantially grow or start your own independent business.

Yesterday Donald Trump spent several minutes on a TV newscast discussing the dramatic affect this legislation will have on the expenses of corporate America. He recounted a conversation he had with one CEO. This new legislation will increase the cost of his present payroll by $2 million. Not only is his company freezing new hires but also will eliminate as many jobs as possible. Then they will hire independent contractors on a 1099 form to handle the eliminated jobs.

One caveat for the independent contractor: Most states have tax and business regulations that clearly define the function of an independent contractor versus an employee. It boils down to the job function being performed. When I was a direct marketing consultant in California, I was performing a job clearly deemed an employee function. The way I circumvented the regulation was to incorporate and have my client hire the corporation rather than me as an individual. My company took on the function of Direct Marketing Director and assigned me to handle the job.

If you are an independent contractor performing creative input to your client, now you can offer management on the front end and production on the back end, just like I did.

Sure, there are many more functional duties to do this right, but your client now has an enormous opportunity to save big HR benefits costs.