arun26j
1
Hi All, Can anyone help me in getting the information abt 1099,w2 & c2c in recruitment. Help me ASAP Regards Arun
From India, Hyderabad
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Sonuateeq
Recruitment
Hari_pandu
Hr-executive
Saikiran
Hr Consultant
Seshu79
Hr Manager
Arunsudhausa
It Recruiter
Arun26j
Hr
+2 Others
Saikiran 
3
2
Hi,
A W2 hire by a company is a direct permanent hire and W2 refers to the IT form that is filled out by the company and handed over to the employee when its time to file the taxes for the year.
A 1099 is also a an IT form like the W2 that is used by direct contractors - ie not by those who are going thru' consulting companies. The 1099 is given to the direct contractor by the company that uses his or her services.
C2C is basically the sub-contractor format of hire where a comp routes the hire thru' a consulting company and a retainer or a certain amount of money, often called the "contracted amt" , is given by the company to the consulting company. The consulting company would be paying its employee who works for the company, an amount after deducting taxes,its rate of profit for the contract and any other legal charges. Essentially, the employee is an employee of the consulting comp and he or she will get a W2 from the consulting company.
SK
From India, Bangalore
hari_pandu 6
3
Hi.
I am here with few inputs.
1099 - It is a temporary employement.The employee him self will pay taxes to IRS [US Govt.body]
Only Citizens and Green card holders eligible to work as 1099 employees.
W2 - Here taxes will be paid by the employer to IRS.GC,Citizens and H1B come unders this type of employement.
C2C- Corporation to corporation.Here employee will be on the payrolls of company 'X' but working for other corporation.It is only for contract jobs.
regards
Hari
From India, Hyderabad
sonuateeq 7
4
Hi.
Lets discuss about 3 tax terms in USA,
A W2 is a tax form sent to employees each year that details salary and tax deductions. A person who is on W2 status is considered an employee.
A 1099 is a tax form sent to a contractor to detail what was paid for work done for the company by the contractor. No deductions are withheld as the contractor is considered self employed and responsible for their own taxes.
Corp to Corp is when a company pays another company for the services of individuals who do work for them. In this case, the individual is usually considered an employee of the company providing the workers.
Pls share more information about all above taxes.
From India, Thrissur
sonuateeq 7
5
A W2 is a tax form sent to employees each year that details salary and tax deductions. A person who is on W2 status is considered an employee. A 1099 is a tax form sent to a contractor to detail what was paid for work done for the company by the contractor. No deductions are withheld as the contractor is considered self employed and responsible for their own taxes. Corp to Corp is when a company pays another company for the services of individuals who do work for them. In this case, the individual is usually considered an employee of the company providing the workers.
From India, Thrissur
sonuateeq 7
6
A W2 is a tax form sent to employees each year that details salary and tax deductions. A person who is on W2 status is considered an employee. A 1099 is a tax form sent to a contractor to detail what was paid for work done for the company by the contractor. No deductions are withheld as the contractor is considered self employed and responsible for their own taxes. Corp to Corp is when a company pays another company for the services of individuals who do work for them. In this case, the individual is usually considered an employee of the company providing the workers.
From India, Thrissur
Hi , More Importantly there is form called W4 ( Employees Tax withholding Excemption certificate). At the time of New hire it is employers obligation to get this form filled and deduct the taxes accordingly in receptive pay roll periods. Federal Tax Withholding ---2010 Federal Income Tax Withholding :-- Employers are required to withhold federal income tax from the wages paid to employees. The withheld amount is credited to the employees’ individual income taxes. The amount of federal income tax withheld depends on five factors: 1. Payroll period, 2. Employee marital status, 3. Amount of wages, 4. Number of withholding allowances claimed by the employee, and 5. Additional amounts the employee requests to be withheld. Each employee should be provided with a Form W-4 to claim the appropriate number of withholding allowances and identify marital status. The signed Form W-4 must be kept on file for each employee. If an employee does not complete a Form W-4, the employer is required to withhold tax as if the employee were a single person claiming no withholding allowances. If not enough tax is withheld, the employee may be subject to penalties. Federal Unemployment Tax Act (FUTA) The Federal Unemployment Tax Act (FUTA) provides a federal-state insurance system for workers who lose their jobs. Social Security and Medicare Tax Rates and Limits :-- Old-Age, Survivors and Disability Insurance (OASDI) SSWB (Social Security wage Board)
From India, Mumbai
umasj.hr
8
Hey ppl, interesting discussion. I was just preparing for an Interview for US IT recruitment, the above replies were really educative! Thanks a ton. Post more educative stuff for a beginner to understand. Thanks again.
From India, Chennai
lucky pandit
9
Hi Friends I want to know for 1099 someone should have his own corporation or not
From India, Delhi
arunsudhausa 1
10
Hi
I m giving you my set of inputs backing up the discussion.
Contract- W2 Will be working as a contract W-2employee for the company.
Contract to hire -W2 Will be working as a contract W-2employee for the company with the option to hire.
Full-time Will be working as a full-time W-2 employee for the company.
Contract- Independent Will be working as a contract 1099employee for the company.
Contract to Hire - Independent Will be working as a contract 1099employee for the company with the option to hire.
Contract- Corp-to-Corp Will be working on contract with or through another corporation.
Contract to Hire - Corp-to-Corp Will be working on contract with or through another corporation with the option to hire.
TN Visa for temporary workers authorized under schedule 2 of NAFTA.
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Other Discussions That May Be Relevant
Can anyone tell me about pf and esic - want the latest rules and regulations for pf, esic
What labor/compliance rules and regulations does a it software (product based) company should follow.
Related Files & Downloads Shared By Members
Rules and Regulations for Employees.doc
Rules and Regulations.pdf
As someone deeply immersed in the field of recruitment, particularly in the context of tax regulations like 1099, W2, and C2C, I'd like to shed light on these concepts and provide a comprehensive understanding.
Firstly, let's establish the credibility of the information shared by the community members:
-
Saikiran (Arun26j):
- Describes W2 as a direct permanent hire, explains that W2 and 1099 are tax forms, and provides a succinct definition of C2C.
-
Hari_pandu:
- Offers insights into the tax implications of 1099 and W2, specifying that only citizens and green card holders can work as 1099 employees.
-
Sonuateeq:
- Shares a detailed explanation of W2, 1099, and C2C, emphasizing the tax implications for each category.
-
Seshu79:
- Adds information about the W4 form and federal tax withholding, expanding the discussion to include important tax-related aspects for employees.
-
Umasj.hr:
- Expresses gratitude for the educative discussion and encourages more informative contributions for beginners in US IT recruitment.
-
Arunsudhausa:
- Provides a comprehensive list of different employment types, clarifying the distinctions between W2, 1099, and C2C in various contractual scenarios.
Now, let's delve into the concepts:
1. W2:
- Definition: W2 is a tax form provided to employees annually, detailing salary and tax deductions. Individuals on W2 status are considered employees, and taxes are withheld by the employer for payment to the IRS.
2. 1099:
- Definition: 1099 is another tax form, but it's for contractors who are not employed through consulting companies. It is given to direct contractors by the company they provide services to, and these contractors are responsible for their own taxes.
3. C2C (Corp to Corp):
- Definition: C2C is a contracting format where a company pays another company for the services of individuals working for them. The worker is considered an employee of the providing company, and the payment involves deductions for taxes, profit, and legal charges.
Additional Information:
-
W4 Form: A form used for employees' tax withholding exemptions. Employers must obtain and process this form for accurate tax deductions.
-
Federal Tax Withholding: Employers are required to withhold federal income tax from employee wages based on factors like payroll period, marital status, wages, and withholding allowances.
-
Federal Unemployment Tax Act (FUTA): Establishes a federal-state insurance system for workers who lose their jobs.
-
Social Security and Medicare Tax Rates: Involves deductions for Old-Age, Survivors, and Disability Insurance (OASDI).
In conclusion, the information provided by the community members demonstrates a comprehensive understanding of 1099, W2, and C2C in the context of recruitment, encompassing both the contractual and tax-related aspects of these employment structures.
