Staples: Buy $300 Visa Gift Cards Get $15 Visa Rebate Card# Money - 海外理财
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Here is the explanation.
Your consulting company is CompanyA.
Your actual working site is at CompanyB.
You are contractor to CompanyB no matter what. Contract to Hire means you
must be contract to CompanyB for a period of time, it is usually 6 month.
After 6 month, CompanyB may convert you to the full time employee. (this 6
month is actually the period for CompanyA to make a lot of profit from you.
Don't be upset, you are not deeply involved. For example, CompanyB pay
Company $150/h to find a contractor. CompnayA finds you and pay you $75/h.
CompanyA makes $75/h from you for 6 month. You are happy because you get 75*
2000 = 150K per year, without any benefit. CompanyA is also happy in this
case.)
Your relationship between CompanyA (your consulting company) can be variant.
You can be the full time employee (W-2) , contractor (1099) or Corp-to-Corp
(1099). If you are taking 1099, you will not receive any benefit and PTO.
In this case, the hourly rate should be at least 20% higher than W-2.
Corp-to-Corp is a specific case. You create a company first, and use this
company to work for CompanyA. You can even sub-contract those projects to
your own company.
I am not a CPA so I can only provide the very basic information related to
tax. If you go Corp-to-Corp, you need to pay higher social security tax (6%
more). But all your lunch and the cost of the gasoline, or even the cost of
travel can be deducted. Nobody takes your pre-paid tax, but you need pay at
lot of tax on the next spring. You can lease a decent car for your company.
This cost is also deductible.
Your consulting company is CompanyA.
Your actual working site is at CompanyB.
You are contractor to CompanyB no matter what. Contract to Hire means you
must be contract to CompanyB for a period of time, it is usually 6 month.
After 6 month, CompanyB may convert you to the full time employee. (this 6
month is actually the period for CompanyA to make a lot of profit from you.
Don't be upset, you are not deeply involved. For example, CompanyB pay
Company $150/h to find a contractor. CompnayA finds you and pay you $75/h.
CompanyA makes $75/h from you for 6 month. You are happy because you get 75*
2000 = 150K per year, without any benefit. CompanyA is also happy in this
case.)
Your relationship between CompanyA (your consulting company) can be variant.
You can be the full time employee (W-2) , contractor (1099) or Corp-to-Corp
(1099). If you are taking 1099, you will not receive any benefit and PTO.
In this case, the hourly rate should be at least 20% higher than W-2.
Corp-to-Corp is a specific case. You create a company first, and use this
company to work for CompanyA. You can even sub-contract those projects to
your own company.
I am not a CPA so I can only provide the very basic information related to
tax. If you go Corp-to-Corp, you need to pay higher social security tax (6%
more). But all your lunch and the cost of the gasoline, or even the cost of
travel can be deducted. Nobody takes your pre-paid tax, but you need pay at
lot of tax on the next spring. You can lease a decent car for your company.
This cost is also deductible.
