Comment on Vibe coding service Replit deleted production database
partial_accumen@lemmy.world 1 day agoMost of those expenses are mitigated by the fact that companies buy them in bulk on huge plans.
There’s no bulk rate on payroll taxes or retirement benefits (pensions or employer 401k match). There can be some discounts on health insurance, but is not very much and those are at orders of magnitude. So company with 500 employees will pay the same rates as 900. You get partial discounts if you have something like 10,000 employees.
If you’re earning $100k gross as an employee, your employer is spending $125k to $140k for their total costs (your $100k gross pay is included in that number).
floo@retrolemmy.com 1 day ago
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.
Businesses, particularly word businesses, operate on much larger profit margins than most of any freelance contractor.