Hi All This is Arun ...Can any one tell me in detail about what is 1099 & W2 in recruitment.It will be very helpful for me if anyone can can provide me the information. Regards Arun
From India, Hyderabad
From India, Hyderabad
6
Hi Arun
This is Prashant here from Mumbai.
C2C, 1099 and W2 are types of contracts that exists in the US Market.
C2C: Corporation to Corporation Billing for any products/services provided (it could be a one man corporation as well)
1099: An Individual bills a corporation for any products/services provided
(it is usually a person only)
W2: is usually a 1099 - tax, where the individual would ask for only the compensation and the employer shall pay the tax
let me know if you require any further details on this
Regards
Prashant
From India, Thana
This is Prashant here from Mumbai.
C2C, 1099 and W2 are types of contracts that exists in the US Market.
C2C: Corporation to Corporation Billing for any products/services provided (it could be a one man corporation as well)
1099: An Individual bills a corporation for any products/services provided
(it is usually a person only)
W2: is usually a 1099 - tax, where the individual would ask for only the compensation and the employer shall pay the tax
let me know if you require any further details on this
Regards
Prashant
From India, Thana
Hi Arun,
In addition to Nashita and Prashant's accurate explanation I would like to add that there are basically 3 types of employyes in US Market
1. H1-B visa holder ( can only work on Corp-to-Corp)
2. Green Card Holers/EAD
3. US Citizens
Apart from that there is also a category for Canadian Citizens as well they are known as TN Visa Permit Holder, they do not require any H1 and will only be requiring an employement letter and can get a TN permit ( allows them to wok in US in a matter of couple fo hours from Canadian Authorities and start wrking in US)
now H1 holders are basically people who are sponsored by their employers who are being permitted by US to work in US for some specific time.
The Employer or the H1 holder will pay the consultants salary as agreed upon and they employer will Bill the Client where the H1 is providing services to a third firm other than his employer.
So they are working on W2 basis with their employers.
These types of employees must always work on a Corp-to-Corp basis when providing their services to a third Party firm, through their employers or H1 holders/sponsers.
In this case the Employer or h1 holder is responsible for paying the taxes for the employee and for his own organisation.
Secondly GC (Green Card) or EAD holder, they can work on 1099 terms, EAD stands for Employement Authorisation Doccument, this status is provided to those H1 holders whose GC is about to be confirmed in few months.
When working on 1099 basis the resource is responsible for paying his own taxes and will bill himself to the firm/compnay where he is providing services.
if the GC holder is also INCORPORATED (Registered as a Compnay) in that case he/she will work on Corp-to-Corp basis and will bill the client on behalf of their corporation.
In this case he is himslef responsible for paying the taxes on his firms behalf and show salary as suited to him to save the taxes.
The US Citizens if incorporated works on Corp-to-Corp OR if not they can only work on 1099 basis as suited to them.
I have already tried to explain in the above mentioned para.
W2 is a status when the employee is directly on the payroll of the client where he has to perform.And the Client is paying them Directly
H1 holder can work on W2, so is the GC or the Citizen.
W2 are of 2 types, W2 hourly and W2 Annually.
As you can point out from the name W2 Hourly, he will get the salary on Hourly basis as decided on weekly, bi weekly or monthly basis and W2 Annually will get the salary twice in 1 month that is after every 15 days.
Apart from this the most significant factor in W2 and 1099 is that W2 employees will get benefits, namely Relocation Benefits, Medical/Health Insurance, dental insurance, 401K (thats like the PF here kind of retirement plan) etc which the 1099 persons don get
Hope this will be of some help.
Pls do not hesitate to revert back for any further information.
regards
Sourabh
From India, Delhi
In addition to Nashita and Prashant's accurate explanation I would like to add that there are basically 3 types of employyes in US Market
1. H1-B visa holder ( can only work on Corp-to-Corp)
2. Green Card Holers/EAD
3. US Citizens
Apart from that there is also a category for Canadian Citizens as well they are known as TN Visa Permit Holder, they do not require any H1 and will only be requiring an employement letter and can get a TN permit ( allows them to wok in US in a matter of couple fo hours from Canadian Authorities and start wrking in US)
now H1 holders are basically people who are sponsored by their employers who are being permitted by US to work in US for some specific time.
The Employer or the H1 holder will pay the consultants salary as agreed upon and they employer will Bill the Client where the H1 is providing services to a third firm other than his employer.
So they are working on W2 basis with their employers.
These types of employees must always work on a Corp-to-Corp basis when providing their services to a third Party firm, through their employers or H1 holders/sponsers.
In this case the Employer or h1 holder is responsible for paying the taxes for the employee and for his own organisation.
Secondly GC (Green Card) or EAD holder, they can work on 1099 terms, EAD stands for Employement Authorisation Doccument, this status is provided to those H1 holders whose GC is about to be confirmed in few months.
When working on 1099 basis the resource is responsible for paying his own taxes and will bill himself to the firm/compnay where he is providing services.
if the GC holder is also INCORPORATED (Registered as a Compnay) in that case he/she will work on Corp-to-Corp basis and will bill the client on behalf of their corporation.
In this case he is himslef responsible for paying the taxes on his firms behalf and show salary as suited to him to save the taxes.
The US Citizens if incorporated works on Corp-to-Corp OR if not they can only work on 1099 basis as suited to them.
I have already tried to explain in the above mentioned para.
W2 is a status when the employee is directly on the payroll of the client where he has to perform.And the Client is paying them Directly
H1 holder can work on W2, so is the GC or the Citizen.
W2 are of 2 types, W2 hourly and W2 Annually.
As you can point out from the name W2 Hourly, he will get the salary on Hourly basis as decided on weekly, bi weekly or monthly basis and W2 Annually will get the salary twice in 1 month that is after every 15 days.
Apart from this the most significant factor in W2 and 1099 is that W2 employees will get benefits, namely Relocation Benefits, Medical/Health Insurance, dental insurance, 401K (thats like the PF here kind of retirement plan) etc which the 1099 persons don get
Hope this will be of some help.
Pls do not hesitate to revert back for any further information.
regards
Sourabh
From India, Delhi
Hi,
My name is Praveen and I'm going to appear for an interview (for US 2 US Recruitments) this Friday. The Operations Manager who took my interview has asked me to get familiarized with all the technical terms used by the recruiters while talking to the folks in US. Can somebody help me out please.......
regards,
Praveen Kumar :( [/url]
My name is Praveen and I'm going to appear for an interview (for US 2 US Recruitments) this Friday. The Operations Manager who took my interview has asked me to get familiarized with all the technical terms used by the recruiters while talking to the folks in US. Can somebody help me out please.......
regards,
Praveen Kumar :( [/url]
this is Amruta frm Mumbai.....
m currently persuin my Masters in Mgmt Studies and specializin in HR, frm Mumbai University.
Currently m wokin on a project of...."Expatriates-Deputing an Employee Abroad"
so i want to knw wht is da role of HR in da same procedure.....i mean the compensation & Benefits , or salary payment for the Expats....
thank you,
Regards,
Amruta
From India, Thana
m currently persuin my Masters in Mgmt Studies and specializin in HR, frm Mumbai University.
Currently m wokin on a project of...."Expatriates-Deputing an Employee Abroad"
so i want to knw wht is da role of HR in da same procedure.....i mean the compensation & Benefits , or salary payment for the Expats....
thank you,
Regards,
Amruta
From India, Thana
Hi friends,
i am working as an IT recruiter.
In recruiting there are 2 types
1.sales and2.Recruiting
Which is better
i have experience in sales for 6months.
As my company is not paying for my work i want to shift to the other company
please guide me on this.Ours is a new company there is no growth here.
i am a hard worker.i want to work in hyderabad please let me know and also tell me which is better sales or receuiting
From India, Hyderabad
i am working as an IT recruiter.
In recruiting there are 2 types
1.sales and2.Recruiting
Which is better
i have experience in sales for 6months.
As my company is not paying for my work i want to shift to the other company
please guide me on this.Ours is a new company there is no growth here.
i am a hard worker.i want to work in hyderabad please let me know and also tell me which is better sales or receuiting
From India, Hyderabad
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