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Tax Term

The document outlines various employment terms including full-time, part-time, remote, permanent, and contract positions, detailing their definitions and differences. It explains the distinction between independent contractors and employees, as well as the tax implications associated with W2 and 1099 forms. Additionally, it describes the concept of Corp to Corp arrangements where one company pays another for services provided by individuals.

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8 views1 page

Tax Term

The document outlines various employment terms including full-time, part-time, remote, permanent, and contract positions, detailing their definitions and differences. It explains the distinction between independent contractors and employees, as well as the tax implications associated with W2 and 1099 forms. Additionally, it describes the concept of Corp to Corp arrangements where one company pays another for services provided by individuals.

Uploaded by

asitofficial56
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tax Term:

Fulltime/ Part-time/Remote: Fulltime is a position where person need to work for


at least 40Hrs a week or more. Anything less than that is considered as part time
(generally 20 hrs a week). When a person don’t need to seat at work place and they
can work from anywhere any time it’s called as remote work.

Permanent/ Contract: Permanent is a position where person is in payroll of the


company and its not billed hourly, Payment is Salary rater than bill rate. Fulltime
salary is usually in Thousand/Annum with all the benefits. Where as contract is a work
mode where person need to work on hourly basis for a certain period, pay rate is also
hourly and it can be with or without benefits and can be on w2 or 1099 or contract.

Independent/ Employee: Citizens, TN permit Holders and GCs, EADs only have a
option to go for Independent positions because they can work for any employer,
where as any other Work Visa holders who can’t work for any other employer who did
not hold his visa and can work only on corp-corp are employees.

W2 is a tax form sent to employees each year that details salary and tax deductions.
A person who is on W2 status is considered an employee.

1099 is a tax form sent to a contractor to detail what was paid for work done for the
company by the contractor. No deductions are withheld as the contractor is
considered self employed and responsible for their own taxes.

Corp to Corp is when a company pays another company for the services of
individuals who do work for them. In this case, the individual is usually considered an
employee of the company providing the workers.

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