TAX TERMS

IN USA
 TAX
TERMS
W2

1099

Corp to Corp
W2 TAX TERM
▪ W2 is the tax form filled by the Employer for its
employees

▪ Employer pays the taxes on behalf on the

employees

▪ Tax amount will be deducted from the pay

checks
1099 TAX TERM

▪ 1099 is the tax form filled by the employee itself

▪ Usually freelancers and Independent

Contractors work on 1099
CORP TO CORP
▪ Staffing company works with the vendor to fulfill
client’s requirement.

▪ Staffing company pays the Vendor.

▪ Vendor manages the payroll and taxes of the

candidate

▪ Candidate is an employee of the vendor, working

at the staffing company’s client.
 $3000
Client :
ABC Consulting
3
$15000 $10000
Client :
Client : ASK Consulting
APPLE $2000
Client :
10 XYZ Consulting
2
15 candidates
1 week
 $15000
Client :
APPLE
15 candidates
1 week