Umbl is a unique employment offering from Dynamed Solutions. Umbl allows independent contractors, consultants, and gig workers, to convert to W-2 employment, while retaining their independence, maintaining their livelihood, and gaining peace of mind from employment-based benefits.
One of the things we've all learned from the pandemic, it's that there are very few safety nets for independent workers. We aim to leverage our staffing infrastructure to better serve that community, in good times and in bad.
"We've got you covered"
How does it work? Umbl is very straight forward ... As part of your employment agreement, you will receive an hourly pay rate equal to 80% of your current bill rate for each client. The cash contributions to health insurance, PTO, and your 401k amount to 17% of your current income being returned to you. The remaining 3% is used by us to fund administration of payroll, cash float for invoicing, all federal and state tax filings, provision of unemployment insurance, life and disability insurance, and professional liability coverage. We understand that there is a "sticker shock" to a reduction in pay rate, which is why we spell out all of the details, and even provide a calculator below, so you can see exactly what you get and exactly what it costs.
Health insurance is on the top of everyone's mind. We offer group insurance plans from United Healthcare for nation-wide coverage. We currently have a Platinum and a Gold offering, and will be adding a Bronze option in July 2021. Dental and Vision coverage is included as well through Guardian.
Umbl contributes 5% of your pay towards the cost of your health coverage. Depending on your age, this should amount to at least 50% of the cost of individual coverage (in most cases it will be significantly more than that). In fact, this non-taxable contribution is made, even if you don't take coverage with us. In that case, we essentially just add 5% to your paycheck.
Paid time off is not something independent contractors usually expect. We know that if we don't work, we don't get paid. However, we feel it's important to have some sort of paid time, so there's less of an impact if you need some time to recover from an illness or take care of a family member (of course, you're free to take off for fun reasons as well!).
If you don't take the time off, your balance will be paid out at the end of each calendar year. In a way, 2% of your rate reduction is given back to you in the form of 40 hours of extra pay in December.
The Pandemic Unemployment Assistance (PUA) that is part of the CARES Act, is the first time that non W-2 workers could file for and collect unemployment payments. While protections for 1099 workers have been discussed in the past, the impact of the pandemic on this population was too great to be ignored. Although the PUA will expire at some point (currently March 31, 2021), there is broad agreement that "something" needs to be done in the future.
Umbl allows the ability to know you are covered, regardless of temporary or unknown future decisions that are made in Washington. Should you have any significant lapse in assignments, we will lay you off due to lack of work, allowing you to collect unemployment until you find a new project, and we re-hire you. Unemployment may not seem like a traditional benefit, but it has become one of the most needed and debated benefits of the last year.
Under construction: Details available on Umbl Flyer or by clicking Apply Now
Life insurance is an area that often isn't given much thought. We provide a $25,000 policy at no cost to you for the term of your employment. While it is a relatively small amount, it is meant to relieve any immediate burdens that could arise.
Disability, both short-term and long-term, is another benefit that the pandemic has brought to the tops of people's minds. With a record number of people experiencing longer-term illnesses, this is a benefit that can't be overlooked. Coverage for short-term disability begins on Day 8 and runs for 12 weeks. If necessary, at that point long-term disability begins and will continue until Social Security kicks in. Subject to some limits, you will receive 60% of your salary throughout this time. This benefit is provided at no cost to you.
As part of the Umbl service, we take over the administration of payroll, billing, collection, cash float, tax withholdings and filings, and professional liability insurance coverage.
In addition, we pay the 7.65% "self-employment" tax that you are currently paying.
Timekeeping is straight forward through a website or an app, expenses can be uploaded with your camera, and we invoice clients based on the same hours that we pay you. It is a very efficient process.
Use the calculator below to see exactly what impact Umbl would have on your paycheck, and the hard-dollar benefits you would get in return. While the calculator can't show you a dollar value for life and disability insurance, or unemployment coverage, we think dollar-for-dollar comparisons add to transparency, which is a critical step in establishing and building a new trust relationship.
With Umbl, you have the option of participating in our employer-sponsored 401(k) plan. We offer a large range of investment funds, including "target date" funds that vary risk based on expected time to retirement. We will match your contributions, up to 4% of your salary.
Enter your current bill rate, along with estimates for the number of hours & weeks you generally work. These numbers drive the rest of the comparison, and will give you a good idea of what the actual financial differences are, and what you get for that differential.
When you work as an independent contractor, you are required to pay what is called a "self-employment" tax for Medicare and Social Security. This is a cost of 7.65%. As a W-2 employee, your employer pays this portion of your taxes.
Your pay rate with Umbl is 80% of your bill rate, so you will see a 20% initial reduction in gross wages (most of this is returned below).
There will be a non-taxable "reimbursement" equal to 5% of your pay, to help cover the cost of health insurance. This 5% is added whether or not you enroll in our plan.
You will accrue personal time off, up to five days per year. Whether you need to take care of a loved one, or spend a day at the beach, the time is yours. We will pay you for any unused time at the end of the year.
Should you choose to enroll in our 401k plan, we will match contributions you make, up to 4% of your pay.
This "Umbl-adjusted" income is a fair dollar-for-dollar comparison to your current gross income, accounting for the self-employment tax that we are now paying.
The monthly differential in take-home pay (roughly 3%) is used to administer the program (payroll, billing, tax filings, cash float), as well as provide unemployment benefits, life and disability insurance, and professional liability coverage.
Click here to find more details, submit a resume, and complete a brief questionnaire to start the conversation.