Finding jobs on H1B –Different Employment Types and Tax Implications.
Firstly below are the employment types available in the job market . Lets look at them in detail.
Corp-to-Corp – As the name suggest employer /corporation would prefer to work directly with another corporation. The biggest reason why a corporation prefers this type of employment is to avoid the potential liability that might exist in dealing with an independent contractor on a 1099 basis. Individuals can incorporate to these corporations and then work with the respective employer.
Independent Consulting– The employer is willing to hire a temporary employee on either a 1099 or W-2 Basis.
1099 Employee/contractor – A 1099 employee/contractor is in most cases a temporary employee. They are not required to complete a W-4 or have the employer withhold taxes. They are responsible for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form 1099.
W 2 Employee : – A W2 employee is an employee whose taxes are withheld by the employer and whose earnings are reported to the IRS via a W2. The W2 employee completes a form W-4 when they start the employment to notify the employer on how much to withhold taxes.
As an H-1B Visa holder, you should look out for job opportunities as FULLTIME else Corp to Corp (c2c).
ALL JOB Posting Will have the either of below job type and Tax details defined.