What Is C2c And W2 And Types Of Positions In Usa W2 Vs C2c

W-2 POSITION

This is kinda contract-based working module. In this, you will be working under employers’ rules & regulations as set by govt., but when it comes to taxes and benefits, you are self-employed, means you’ll have to pay self-employed tax which will be around 6.5-7% of your payroll excluding other taxes.

Basically, W-2 is a form which an employer sends to their employee & IRS (Internal Revenue Service) mentioning the financial accounting of employee including their annual income, amount to be paid as tax and so on. This process starts in January and runs until early February.

If you are employed under W-2 position then you will not get much of the benefits as one gets under full-time position. But you might get increments and rid of lengthy working hours.

Let’s consider a few points of pros & cons to understand it better:

PROS FOR W-2 POSITION

You will get increments and promotions shortly or in the expected time.

You will get time for your personal life.

You will not be burdened with the workload.

You will have job security; your employer can’t fire you before the date as mentioned on the contract.

CONS FOR W-2 POSITION

You will not get benefits (paid leave, health insurance, 401K, paid public holidays, paid sick leaves) which one gets in a full-time position.

You will not be able to do multiple jobs as you were allowed only one employer.

You will not get any tax concession means to manage your tax by yourself.

You are not self-employed but have to pay a considerable amount as a self-employment tax.