Corp-to-Corp means you're self-employed, so you need to pay FICA in full, which is 13.3% (may go up to 15.3% next year). For W-2, you only need to pay half of the FICA, which is 5.65% (may go up to 7.65% next year). But since your hourly rate is high, not all of your salary is subject to social security tax, the difference is smaller than 7.65% (13.3% - 5.65%). In addition, as self-employed worker, you may be able to deduct more in your tax return. However, you may not have some benefits of a W-2 contractor, such as medical insurance, 401k, etc. So it is hard to tell which one is better. Personally I would choose W-2, but this is your call.
【在 p***l 的大作中提到】 : 请问一下,有没有人知道contractor选用哪种合同比较好呢?我的选择是W2 70/hour : vs Corp-to-Corp 72/hour。哪位有经验的大虾指点一下。
p*l
4 楼
Thank you SETI. Your information is really helpful. I know that setting up the Corp-to-Corp contract is a bit more complexed than simply accepting a W- 2 contract from the head hunter. I myself don't think it is worth the mess for about $4000 a year. Not to mention that most of the $4000 would be taken away from my pockect as tax or other deduction.
which is 13.3% (may go up to 15.3% next year). For W-2, you only need to pay half of the FICA, which is 5.65% (may go up to 7.65% next year). But since your hourly rate is high, not all of your salary is subject to social security tax, the difference is smaller than 7.65% (13.3% - 5.65%). In addition, as self-employed worker, you may be able to deduct more in your tax return. However, you may not have some benefits of a W: -2 contractor, such as medical insurance, 401k, etc. So it is hard to tell which one is better. Personally I would choose W-2, but this is your call.
【在 S**I 的大作中提到】 : Corp-to-Corp means you're self-employed, so you need to pay FICA in full, which is 13.3% (may go up to 15.3% next year). For W-2, you only need to pay half of the FICA, which is 5.65% (may go up to 7.65% next year). But since your hourly rate is high, not all of your salary is subject to social security tax, the difference is smaller than 7.65% (13.3% - 5.65%). In addition, as self-employed worker, you may be able to deduct more in your tax return. However, you may not have some benefits of a W-2 contractor, such as medical insurance, 401k, etc. So it is hard to tell which one is better. Personally I would choose W-2, but this is your call.