What is W2? What is W2 Contract?
Definition of W2:
This is the simplest option of all other options. There is no need for bookkeeping in other options like Corp-to-Corp and 1099. In this case, the contractor's wages are subject to the same tax withholdings as a regular employee of the client.
In some cases, the approximate percentage of benefits and taxes is about 12.5 to 15% percent.
What is a W2 Employee?
A W2 employee receives a W2 tax form from their direct employer. W2 employees are hired directly without any third party and work under their employers.
W2 Form has 2 essential Parts -
1. Lettered Section
2. Numbered Sections
Do Not Cut, Fold, or Staple W2 Forms
W-2 Wage and Tax Statement
Copy B—To Be Filed With Employee’s FEDERAL Tax Return.
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