this post was submitted on 21 Jul 2025
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Large companies also make massive profits because of the scale they work on. Matching 401(k) contributions? It doesn’t need to be an order of magnitude larger for it to make a huge difference. Simply doubling my 401(k) is a big deal.
And of course they get a “ball rate“ on payroll taxes, especially for companies who have over 1000 employees or over 5000 over 10,000. They experienced this by having a lower tax rate for larger businesses.
Not to mention that they often pay more and pay a steady wage due to the fact they can afford it. Freelance contractors make less, and work isn’t guaranteed to be steady.
Businesses, particularly word businesses, operate on much larger profit margins than most of any freelance contractor.