| Job Shopper Lingo |
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Captive – a direct employee Client Company – the company a job shopper is contracted out to through a job shop Direct Employee – an employee who works directly for the client company. Job Shop – an employment company that hires “temporary” workers and “contracts” these employees out to client companies. The client company pays the job shop for all hours the job shop’s employee works. The job shop marks up the job shopper’s rate by “X” % to cover expenses and make a profit. Job Shopper (1099) – a person who is employed as a “temporary” worker at a client company, but is paid directly by the client company as a 1099 contractor. Be advised, the client company may not pay the 1099 job shopper on a weekly basis. Generally, the 1099 job shopper is treated like any other sub-contractor the client company uses, and is paid on a 30/60 or 90 day rotations. The 1099 job shopper is responsible for withholding and paying all state, federal, social security and medical taxes from the payments made by the client company. As a 1099 job shopper, you are responsible for paying both the employer and employee taxes. A 1099 job shopper is contracted out to the client company to perform work duties, however, the job shopper is not an employee of the client company. Job Shopper (Co/Co) – a person who is employed as a “temporary” worker at a client company, but is paid directly by the client company to a company/corporation the job shopper has established. Be advised, the client company may not pay the Co/Co job shopper on a weekly basis. Generally, the Co/Co job shopper is treated like any other company/corporation the client company uses, and is paid on a 30/60 or 90 day rotations. As a Co/Co job shopper, your company/corporation is responsible for paying both the employer taxes and also withholding and paying any employee taxes. A Co/Co job shopper is contracted out to the client company to perform work duties, however, the job shopper is not an employee of the client company. Job Shopper (W-2) – a person who is employed as a “temporary” worker through a job shop. The job shop withholds and pays all state, federal, social security and medical taxes from the job shopper’s paycheck. A W-2 job shopper is contracted out to the client company to perform work duties, however, the job shopper is not an employee of the client company. Mark-up – the dollar amount over and above the job shopper’s hourly rate, a job shop adds on to the job shopper’s rate in order to cover expenses and make a profit. (I.e. job shopper’s rate = $50/hr, job shop marks-up rate 20% or $10/hr, job shop charges client company $60/hr for all hours job shopper works for client company). Per Diem – technically per diem is a daily allowance for expenses incurred while away from you primary residence. Per Diem is supposed to be an amount determined by the GSA that is over an above your hourly rate. However, most client companies no longer pay per diem, so job shops take the daily amount and multiply by 5 or 7 days and determine an hourly rate per diem be split out of your base hourly rate. (I.e. rate = $50/hr, Per Diem daily rate $100, $100 X 7 days +$700, $700/40 hrs = $17.50/hr). So the shop would split out $17.50/hr from your base hourly rate of $50/hr, meaning you would only pay taxes on $32.50/hr. Per Diem is also referred to as PD. Rate/Overtime – an hourly dollar amount a job shopper is paid for hours worked over and above forty hours in a week. The overtime rate is generally paid at 1.5 times the base hourly rate; however, check your state employment laws. Some states do not require a company to pay 1.5 times the hourly rate and only require the base hourly rate to be paid for overtimes hours worked. Also, some states like CA require employers to pay 1.5 times the hourly rate for hours worked for any hours worked over 8 hours in a day. Also, CA requires an employer to pay 2.0 times the hourly rate for hours worked on the 7th consecutive day in a workweek. Rate/Straight time – an hourly dollar amount a job shopper is to be paid for hours worked up to 40 hours in a workweek. |
