Sorry for the delay
Satish,
W2 hrly is basically negotiating with the employer to be paid on hrly basis with no benefits including vacations. Obviously then you negotiate to ask for more than you would have ordinarily asked when you have benefits. It is very beneficial if your spouse can cover your health insurance. I did not have choice so had to go with hrly despite me having to shell out heavy on health insurance. Now the downside from the INS perspective is that the company treats you as a temporary employee and hence getting a letter from them to say that you are permanent and your job is secure for future, is very difficult. Again W2 rly treats you badly when you know that the contract with the client is ending on a specified date. Once you are out of the project then the company will not go out of the way to get you a job since you will not be on "bench". Basically you are on payroll and company is paying taxes for you as long as you are on project. The day you are out, you are no one to them....this is all based on my experiences.
W2 is different from corp- to- corp where again you get paid hrly like in W2 but just that you will be paying more taxes and the company will be paying less. Only condition is that you should have a company of your own or one that you can represent. Now you want to make sure that you negotiate for a bigger pie since you will be paying more taxes...
I know I have the letter that I sent to INS from that employer. Allow me to check my PC at home and once I get it I will definitely put it up here. Good news is that it is a letter drafted by a reputable attorney. Allow me a day or two.
Hope it helps Satish. Let me know if you or any one else has any other questions.
Good Luck and thanks