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Some years ago, I contracted through an agency then known as PACE and now
called Solo W-2 (oops, looks like another name change is underway, to Solo
Workforce). It is a good setup for contractors who can find direct
contracts and want to enjoy the benefits of virtual self-employment and yet
actually be employed by the agency (or whose clients want them to work
through an agency). You operate as your own one-person division, and your
division pays (pre-tax) for the benefits that you want, including health
insurance if you choose to use it, reimbursement of normal business
expenses, 401(k), etc. For this, they take 6% as a fee, which you can
reduce by referring others to them.
No financial interest on my part. I was satisfied with the arrangement.
They're at www.soloworkforce.com