Quoted from KozMckPinball:The incentive IMO for being a contractor is that it allows someone to work on a project and then take time off between projects. It's a departure from being in a long term 9-5 job. Not sure where health care bennies or retirement savings come from but that's a concern for sure.
Lots if people like to be contractors because you can write stuff off. One of the down sides is you have to pay self-employment tax (which is the half of your social security and Medicare that your employee pays for you). There are some good options for retirement savings as a contractor, just not a typical 401k. Marketplace Healthcare sucks. I think that's alot better when you are with a big company