Tax Terms plays a key role in US job market / USIT Recruitment so in-order to have good understanding about US recruitment ,every recruiter must have knowledge about the US Tax Terms .
Basically USIT Recruitment works on two key factors :
- Relationship between clients and Staffing Companies
- Relationship between USIT recruiters/Bench Recruiters and the management
There are three (3) Tax Terms which are generally used in US Job market.
W2 is one of the US Tax Terms which is an agreement between individual and the corporation and coming to Tax , this will be paid by the individual.
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 transferring their Visa then they are allowed t work on W2.
- W2 Candidates will be some basic benefits by their employer
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. (Not individuals). Tax will be paid by the corporation on behalf of their consultants .
H1B is the independent visa where they need someone to sponsor to stay in US so they will sign a an agreement with their preferred staffing firm , then this staffing firm has rights to market the H1B Resume.
Any US Valid Visa can work on C2C basis.
1099 is one of the rarely used tax terms in US job market as no one prefers to work on 1099
Happy Recruiting ; Happy New Year 2019
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