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Thread: Difference between W-2 and Corp-to-Corp

  1. #1
    Join Date
    Apr 2006
    Posts
    118

    Question Difference between W-2 and Corp-to-Corp

    I am on H1B. I would like to know the difference between W-2 and Corp-to-Corp.

    I just went through some articles on the internet. But not very clear.

  2. #2
    Join Date
    Aug 2005
    Posts
    847

    Default

    1) If you are working on W-2 with Company- A means,your H1 should be with company-A.
    Here your pay will be little high,means less deductions or less commissions.When your company-A getting 50 bucks from client then they keep 10 or 15 bucks their commission and your W-2 will be generated for 35.
    2) When come to Corp-to-Corp(C2C) means your vendor company have tie with your employer Company- A.
    here your pay will be less.Vendor company keeps soem commission from total rate and again your employer Company-A will also keeps its margin and pay you the remaining rate.
    Here out of 50 bucks vendor comepnay keeps 5 or 6 bucks and remaining 44 will get your employer Company-A,then he again keeps his commission 15,then finally it will be 30 or 29 on your W-2.

    I hope you got it.
    Note : H1 people SHOULD only work on their employers(Company-A) W-2.For few jobs C2C doesnot works.
    Most of our Desi employers have tie with American companies or vendors,so in this case you have C2C oprtion.Clients keep their direct contact with American vendors,very few desi's have direct supply with clients.
    Last edited by KangYu; 11-07-2008 at 03:06 PM.

  3. #3
    Join Date
    Apr 2006
    Posts
    118

    Thumbs up

    Thanks for your excellent answer. I got it now.

    If my company-A has direct clients, then I can go for W-2

    But if company-A gets projects only from vendors, then we have only corp-to-corp. Is that right ???

    What do you mean by "H1 people SHOULD only work on their employers(Company-A) W-2"
    Last edited by csharpguru; 11-07-2008 at 03:37 PM.

  4. #4
    Join Date
    Aug 2005
    Posts
    847

    Default

    Quote Originally Posted by csharpguru View Post
    Thanks for your excellent answer. I got it now.

    If my company-A has direct clients, then I can go for W-2
    W-2 is issued from your company-A on your name,it is the year ending summary whcih shows all of your total net income,taxed paid and gross income,from Jan to Dec.

    But if company-A gets projects only from vendors, then we have only corp-to-corp. Is that right ???
    YES


    What do you mean by "H1 people SHOULD only work on their employers(Company-A) W-2"
    While on H1 status you only to work with your emplyoer,who sponcered your H1.To work with other employer you should change or transfer your H1 to that company,if he is ready to process your H1.If you are on EAD then you can have n number of W-2's for 1 year

  5. #5
    Join Date
    Apr 2006
    Posts
    118

    Thumbs up

    Thanks KangYu

  6. #6
    Join Date
    Apr 2006
    Posts
    118

    Question

    When on H1 working on company-A, can company-A directly bill end-client without any vendors in between.

  7. #7
    Join Date
    Jul 2013
    Posts
    2

    Default w2 or c2c

    Hi,


    I am on L2 visa. I am applying for jobs..one employer asked me which one do u prefer W2 or C2C? I don't understand first..I read some articles then i understand something.but i am in confusion. which one is best..could you please suggest me. i don't want Health insurance.because i already have health insurance with my husband's company. please reply me.

    -thanks
    swetha

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