General Discussion

hexola

(4,835 posts) Fri Jan 26, 2018, 11:30 AM Jan 2018

How do Trump Tax Cuts affect Temp Labor Industry?

In my area - these agencies like Manpower, Aerotek, and others are gateways to "official" employment in warehouses and other industry in the area.

How do the new tax rules affect them?

Are they obligated to pass something on in the form of higher wages?...seems so unlikely.

They would just gobble up any extra tax savings and keep offering the same low, truncated wages...right?

With no representation - how can temp workers ever benefit?

Mostly curious - I have no idea how these agencies tax or deal with payroll or how that relates to how they procure jobs from employers.

Just seems like these are the people least likely to see any benefit.

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How do Trump Tax Cuts affect Temp Labor Industry? (Original Post) hexola Jan 2018 OP

It effects them like any other corporation. fescuerescue Jan 2018 #1

fescuerescue

(4,448 posts)

1. It effects them like any other corporation.

Reply to hexola (Original post)

Fri Jan 26, 2018, 12:54 PM

Jan 2018

They have no obligation to increase wages or rates.

If their employees are on W2 basis, they will utilize the new tax tables by 2/15/18, possibly increasing the size of the take home. No different than any other employer.

If their employees are contractors on a 1099 basis, then no taxes are withheld anyway and the contractor is responsible for quarterly tax payments etc.

The profit that the company makes will simply be taxed based upon the new tax laws.

For me - I'm a long term contractor (by choice) and I work with a temp agency. I'm on a 1099 basis and my contract with them is for an hourly rate and that is the same as before. My personal tax rate will change for 2018.

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