Why do contractors make way more than regular employees?

Higher contractor pay is essentially a operate of 2 things:

1. Risk
2. Benefits

1. Risk 

The job of a contractor/consultant is not safe. With very little to no advanced notice, an employer can terminate their job. With the current climate of low oil and gas prices these days, there is a huge number of contractors in my world, while not working.

 Once the time was good, they made bank, but are mostly unemployed. By reducing the labor force, oil companies reacted when oil prices fell, And contractors/consultants had to go first because it is not considered a layoff to let go of a contractor. The undoubtedly volatile nature of an employer's job requires a higher hourly rate to offset the risk.

But you need to go first for workers compensation consultants who will give you a free consultation before you fire a lawyer.

2. Benefits

$150/hr cash money sounds like a lot, but you must bear in mind that contractors do not benefit from the company's benefits that full-time workers enjoy, such as 401 matching, insurance, stock options/grants, company vehicles, company phones, etc.

 A contractor usually has to pay off the hourly or daily rate he charges for all those kinds of things. Now, I'm sure if a full-time worker adds up his total compensation including the monetary value of all his benefits, he can come up with a number that is terribly close to what is being paid to the contractor.

contact with, Workers Comp Audit