While we certainly can reduce the government headcount by at least 20% by getting them back to the office and working full days, let’s not forget how much money we taxpayers are paying for contractors.
The maximum compensation cost for a contractor is…..get ready for it….$646,000 a year! Many of these contractors are government retirees who set up a contracting firm for their sole client - the government department where they worked - and then continue to do their previous job, taking in a 6-figure pension plus billing $400 an hour.
I know someone who retired from the government, is collecting $100,000 plus in pension, and earning another $400,000 on his contract.
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The maximum compensation cost for a contractor is…..get ready for it….$646,000 a year! Many of these contractors are government retirees who set up a contracting firm for their sole client - the government department where they worked - and then continue to do their previous job, taking in a 6-figure pension plus billing $400 an hour.
I know someone who retired from the government, is collecting $100,000 plus in pension, and earning another $400,000 on his contract.
OFPP Updates Contractor Compensation Cap for 2024 | Forvis Mazars US
Learn how the OFPP updates affect contractors and how Forvis Mazars can help your organization prepare the allowability and allocation of employee compensation costs.
