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w2 and 1099
- Thread starter casttree
- Start date
casttree
I believe 1099 is between corp to corp where as W2 is not a permanent employment but they would deduct taxes and give you salary. You won't have any benefits or the luxury of getting an employment letter if required. You need to be a full time employee for I-485 approval.
Check with others.
I believe 1099 is between corp to corp where as W2 is not a permanent employment but they would deduct taxes and give you salary. You won't have any benefits or the luxury of getting an employment letter if required. You need to be a full time employee for I-485 approval.
Check with others.
atlantabhopali
Registered Users (C)
w2 is safest bet. All permanent employees work on w2, with which their taxes are withheld. Some temp employees work on w2 as well. U should be on w2 "and" be a permanent employee for GC.
1099 is always for a contract position, whether personal or corp to corp. Taxes are never withheld in a 1099 position. Hence, any work on 1099 cannot be leveraged to prove permanent employment for GC purpose. The only exception is that u prove that employment is temporary only till u dont have GC and after u get GC, it would be permanent. I believe jaxen did that - search for his posts.
goodluck
-ab
1099 is always for a contract position, whether personal or corp to corp. Taxes are never withheld in a 1099 position. Hence, any work on 1099 cannot be leveraged to prove permanent employment for GC purpose. The only exception is that u prove that employment is temporary only till u dont have GC and after u get GC, it would be permanent. I believe jaxen did that - search for his posts.
goodluck
-ab
TSC_sufferer
Registered Users (C)
As I understand, you just got to show that work you are doing is permanent in nature and you can do that by showing 40/week in the employment letter.
I remember long back when I was submitting I-140 my lawyer asked me to get the experience letter showing I was working at least 40/week.
I remember long back when I was submitting I-140 my lawyer asked me to get the experience letter showing I was working at least 40/week.
1099 is indpendent work
EAD holder is eligible for 1099 but consider all the pros/cons before starting work on 1099.
Some article---
W2 refers to an employee/employer relationship where the technical services firm hires the contractor. It is important to note that the contractor is an employee of the shop and not the client. Payments made to the contractor are payroll payments and appropriate taxes are paid and accounted for by the employer.
1099 refers to an independant contractor status where the shop is paying the contractor as contract lobor. The contractor does not have to be incorporated or even have a business. 1099 is the IRS form used by a company to report payments made to individuals for various types of income. For instance the form that a person's interest income is reported on is a 1099 Int. form. The 1099 status is often confused with the Corp-to-corp arrangement because payments to a corporation can be reported with the 1099 form. If the proper tax ID information is provided and verified and all accounting is done properly it is not necessary for a company to report payments with a 1099 form. The Ragan tax reform of 1986 greatly reduced the number of independant contractors in 1099 status. Most clients will no longer accept contract labor as a way of doing business but will work with an individual that is incorporated.
Cost of C2C
There are statutory costs related to operating as a corporation instead of a W2. These are the same basic costs that a shop will incur for any employee:
Company share of FICA - 6.2% of first $76,200
Company share of Medicare - 1.45% of all income.
Federal Unemployment Tax - .8% to 6.2% of first $7,000
State Unemployment Tax - Varies per state - 2 to 5.4% on $7,000 to $32,000 of income.
Workmans Comp. - roughly 1% of all income.
Additionally there are overhead expenses that are a function of the total payroll or gross proceeds. Each state has registration fees which require yearly fees to maintain, registered agents must be obtained for each state, bookeeping fees and CPA fees are necessary and insurance requirements add to the cost of doing business.
EAD holder is eligible for 1099 but consider all the pros/cons before starting work on 1099.
Some article---
W2 refers to an employee/employer relationship where the technical services firm hires the contractor. It is important to note that the contractor is an employee of the shop and not the client. Payments made to the contractor are payroll payments and appropriate taxes are paid and accounted for by the employer.
1099 refers to an independant contractor status where the shop is paying the contractor as contract lobor. The contractor does not have to be incorporated or even have a business. 1099 is the IRS form used by a company to report payments made to individuals for various types of income. For instance the form that a person's interest income is reported on is a 1099 Int. form. The 1099 status is often confused with the Corp-to-corp arrangement because payments to a corporation can be reported with the 1099 form. If the proper tax ID information is provided and verified and all accounting is done properly it is not necessary for a company to report payments with a 1099 form. The Ragan tax reform of 1986 greatly reduced the number of independant contractors in 1099 status. Most clients will no longer accept contract labor as a way of doing business but will work with an individual that is incorporated.
Cost of C2C
There are statutory costs related to operating as a corporation instead of a W2. These are the same basic costs that a shop will incur for any employee:
Company share of FICA - 6.2% of first $76,200
Company share of Medicare - 1.45% of all income.
Federal Unemployment Tax - .8% to 6.2% of first $7,000
State Unemployment Tax - Varies per state - 2 to 5.4% on $7,000 to $32,000 of income.
Workmans Comp. - roughly 1% of all income.
Additionally there are overhead expenses that are a function of the total payroll or gross proceeds. Each state has registration fees which require yearly fees to maintain, registered agents must be obtained for each state, bookeeping fees and CPA fees are necessary and insurance requirements add to the cost of doing business.
one cannot work on 1099 on h1 or pending greencard.
only w2 shows employer-employee relationship. even w2 have various classification like w2 temp w2 employee etc. but as long as w2 you should be fine.
bcis expects your job to be permanent - salaried or hourly with 40hr/wk and no benching concepts. benching is not allowed. you shoudl be paid whether you have work or not.
main difference between w2 and 1099 is that fica (the amount which you pay under social security and medicare) is matched by employer in w2. while in 1099 employer just pay you without withholding any tax and you are responsible to pay it at every quarter or year. its like you are paying twice the sum of social security and medicare. and 1099 is a clear indication of temporary employment.
only w2 shows employer-employee relationship. even w2 have various classification like w2 temp w2 employee etc. but as long as w2 you should be fine.
bcis expects your job to be permanent - salaried or hourly with 40hr/wk and no benching concepts. benching is not allowed. you shoudl be paid whether you have work or not.
main difference between w2 and 1099 is that fica (the amount which you pay under social security and medicare) is matched by employer in w2. while in 1099 employer just pay you without withholding any tax and you are responsible to pay it at every quarter or year. its like you are paying twice the sum of social security and medicare. and 1099 is a clear indication of temporary employment.