W2 Sales Executive
There are three (3) Tax Terms which are generally used in US Job market.
• W2
• C2C
• 1099
W2
W2 is one of the US Tax Terms which is an agreement between individual and the corporation.
Tax : On W2 tax will be taken care by his/her employer as the employer withholds a part of pay.
What taxes need to be paid?
• Federal income Tax
• State Income Tax
• Social Security Tax (SSN) Tax
• Medicare Tax
For instance the person who is seeking a job opportunity with a valid work authorization (US Citizen/Green card/H1B /OPT /TN visa etc..,) is termed as consultant /Candidate.
Like wise there are some staffing agencies who take these Consultants on their bench according to the interest of the consultants .
If a H1B candidate is on one of the staffing company (“X” ) payroll (or made an agreement with an employer for a certain period ) then this H1B Candidate is called as W2 of this (“X” ) Staffing firm
Only Green card /US citizen / EAD / TN Visa can work on W2 Tax Term
H1B are not allowed to work on W2 if they are in agreement with other employer but they are allowed to work on W2 when they are going to Transfer their Visa.
W2 Candidates will have basic benefits from the employers end like Medical , insurance ,PTO,401K
C2C
C2C is one of the commonly used Tax Terms in the US , which is the most preferable Tax by most of the consultants
C2C is an agreement between two Corporations and under this Tax Term your company/corporation is responsible for your Taxes.
Example:
You are an employee of company – X (So you are under payroll of company -X) but you are working for company – Y, so in that case, there will be a C2C agreement between company – X & company – Y
Company – Y is not responsible for you taxes. Only your company (Company – X) will pay all the taxes.
Any US Valid Visa can work on C2C basis.
1099
1099 is one of the rarely used tax terms in US job market as no one prefers to work on 1099
1099 is and independent contractor or freelancer where they are liable to pay their own taxes and files their payroll.
What are different US Tax Terms?
There are 3 types of tax terms i.e W2, 1099, C2C
What is the difference between W2 and C2C or Corp-to-Corp?
C2C or Corp-to-Corp is an agreement between an individual (Valid US Visa Holder) to a corporation.
What is the 1099 Tax Term?
When a person is paid on 1099 tax terms all the money earned by the candidate is paid on untaxed bias so, the candidate is responsible to pay the tax.
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Follow CutshortShubham Vishwakarma
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