The company that I work for is structured a tad weird. There are only a few actual employees for the company. Everyone else (including my manager) is "hired" through a separate agency. When I was brought on board, I was given the offer from the main company. Then they referred me to sign in with the hiring agency, who processes all the payroll information.

Now they want to switch me to a different hiring agency within 90 days (the employees here are split between 3-4 different agencies) to consolidate everyone. This will be a full W2 position through this agency.

I was told they would at least match my current pay, and I still get no benefits.

My question here is: would it be inappropriate to ask for a higher pay when submitting my paperwork to this new company? Also how would I ask for a pay raise in the future?

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    Personal reaction: Sounds to me like this company is Just Begging to be audited by the IRS. Calling employees contractors is an attractive cheat, but Doesn't Work. – keshlam Jul 15 '14 at 18:27
  • A lot of companies are doing this, even though the cost savings for converting the longer-term employees would actually benefit the companies. They've just gotten the fixed idea that outsourcing all of their payroll is easier, and Will Not Budge. It's annoying as hell. And yeah, if they were all audited, I suspect that there'd be a sudden wave of contracts ending, workers shuffling, a few hasty conversions, and LOTS of lost institutional knowledge. – user22432 Jul 15 '14 at 18:39
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    This structure reeks of "we're trying to dodge liability" be it legal, taxes, etc. I would ask for a higher salary personally, it's not in appropriate when getting bounced around. Plus something stinks here... I'd get what you can out of it, if they have such an odd structure to maneuver themselves in the legal realm, it's because they probably need to. The question is why they need to, and should you worry about it? – RualStorge Jul 15 '14 at 18:39
  • Considering they allow "up to" 39 hours/week, it's obviously dodging financial liability. – user17163 Jul 15 '14 at 18:43

The "hiring company" just handles payroll, payroll taxes, and benefits for the actual employer. A couple of days before payday, the actual employer sends the "hiring company" a bunch of money. They pay taxes, pay you, and keep some portion as a service fee. The minute your actual employer doesn't make payroll, the "hiring company" will terminate you. The "hiring company" pays you what the actual company tells them to pay you. If you want more money, talk to your manager.

  • Thanks for the clarification. That makes perfect sense on who's who with the pay raises. Based off our discussion with the new hiring company, they're finally giving us some PTO, vacation, and benefits starting next year so I'm fairly happy with the new additions already. – user17163 Jul 16 '14 at 15:57

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