Hi,

I want to know the difference between compesation in W2 and
corp-to-corp when working as a consultant for a company.

for eg: if my comp rate is 40$/hr W2 for 1st case and
40$/hr corp to corp for second, in which case am I supposed to take care
of my taxes?

AtlantaTaxExpert

Wildtype:

If it's W-2, then you are considered an "employee" of the paying corporation. They would be responsible for one-half of the FICA taxes, which would mean you would pay 7.65% and they would pay 7.65%.

If it's corp-to-corp, then the payment would be considered accounts receivable by your corp. How much of the $40 hourly rate you would actually get would depend on a variety of variables too numerous to go into here.

nilesh_nimkar2001

Hello

I need some help regarding salary disputes with employeer.

I am on H1B and started on the project after initial bench period of 3 months. For those three months, first month, my employer did not paid any thing except $400 for monthly expences. second and third month he paid me @30K / anum whereas LCA says ~45K/anum. He promised me to pay the difference after I got the project. He did not gave me any written confirmation but he promised verbally.

I am planning to resign the company now and just wanted to see if I can recover any balance amount from him. That is second interest but my first interest is to let DOL know about this and save consultants who have faith on this company and coming from India.

I do not want to hire any lawyer for this. My questions are .

1. How can I approach DOL ? Do they have any forms / applications to be filled in?

2. If I complaint against this employer then will that affect my credit history ? or will it affect my H1B transfer process which is in progress right now ?

thank you
Nilesh

AtlantaTaxExpert

Answered on next post!