20% more is high, I think, unless they are including health insurance in that 20%, in which case it's low, or unless they are going through a body shop/hr outsorcing scam. Workers comp is pretty minimal for tech workers (though... these people drive to on-site? that could drive up workers comp rates) and the employer side of the payroll taxes are 7.5% Yeah, you've gotta pay someone to figure it out, but that's a job that scales pretty well.
That said, it's an interesting move, I think one we'll see more of. I mean, you provide the end-client a lot more peace of mind if you actually have all the required insurance. That's what I think is so weird about most of the housecleaning "agencies" - most of them 1099 their cleaners... meaning that nobody has worker's comp covering the cleaners, which is a iffy situation for everyone involved.
That said, it's an interesting move, I think one we'll see more of. I mean, you provide the end-client a lot more peace of mind if you actually have all the required insurance. That's what I think is so weird about most of the housecleaning "agencies" - most of them 1099 their cleaners... meaning that nobody has worker's comp covering the cleaners, which is a iffy situation for everyone involved.