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    Anu_sha's Avatar
    Anu_sha Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 17, 2007, 12:02 PM
    What is W2 and Corp to corp
    Hi

    Iam on H1B .

    Iam in search of jobs on .net technology.

    Whenever I call some consulting company, they ask me if I am willing for w2 or corp to corp!

    What are these tax terms?

    Iam not willing to change my employer as I have good terms with him. What should I answer about these tax terms.

    Please answer
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 18, 2007, 02:20 PM
    If you are an employee, you get a W-2, under which yo0u pay half of the FICA taxes and the employer pays the other half. You will also be eligible for medical benefits (immediately) and retirement benefits (after you have worked for the company for awhile).

    If you work corp-to-corp, you will be an independent contractor and get paid under Form 1099-MISC. In this case, YOU must pay ALL of the FICA taxes and you will get NO medical or retirement benefits.

    If you go the independent contractor route, be sure to draw a LARGER paycheck to compensate for the higher taxes you will pay plus the fact that you will need to buy medical insurance.
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