Information About US Tex Terms 1. HL-B visa holder (can only work on Corp-to-Corp) 2. Green Card Holders/EAD 3. US Citizens ‘Apart fram that there is alsa a category fr Canadian Ckizens as wel they are known as TW Visa Permit Holder, they do not require any HI ard will only be requiring an employment letter and can get 2 TN permit (allows them to work n US a macter of couple of hours from Canaclan Author les and start working NUS Now Hl holders re basicaly people who are sponsored by ther cmployars who arsbaire permit by US to workin US for some soeefc time: ‘he Employer the Hi holder unl pay the consultant salary a agreed upon anc hey employer wil ll the Client where the HL is proving services toa third frm ether thar his employer. So they 2re working on 02 bass with thelr employers. These tyees of employees must always work on a Corp'to-Corp basis when providing thir servies to @ tira Pary frm, through their ampleyers or Hi haleers/sponsors| In this case the Employer or hi holder i responsible for paying the texes forthe employes and for he wn eigantzation Secondly GC (Green Cars) or EAD holder, thay can werk on 1009 terms, EAD stancs for Employment Authorization Dooument this satus is provided to thoxe HL holders whose GC is about to be confirmed infew months \When working on 1098 basis the resource is vesponile for paying his ow taxes 2 wl il hist the firn/corpany where he is proving services the GCholer is alse INCORPORATED (Registered as 2 Company) in tht case he/she wll wrkon Corpte-Corp cass and wil il the clint on baheF of thei corporation, In this case he himself responsible for paying the taxes his fms baba and show salary 2s suited to him to save the taxes. Tho US Citzens incorporated works on Crp to-Carp OR if nct they can only work on 1099 basis ae cuted eo them. | have aleady tied to explain inthe above ‘mentioned Para. W2 i a status when the emrloyee i iecty onthe payroll ofthe client where he has to perfor. Andthe Gient is paying them crac. Hihaldercon workon W2, £0 the GC or the Citizen, Weare of 2 types, W2 hourly and W2 Annually As you can poirt cut frm the name W2 Houty, he will get the salary on Hourly basis as decided on eekly, i weekly or month bass and W2 Annually wil get the salary twice In month that is after every 15 days ‘par fom this the mast significant factor In W2 and 1099 fs chat W2 employees ll got benefits,Information About US Tex Terms ramely Relocation Benefits, Medical/Health Insurance, decal insurance, 402K [that's ke the PF here bd of recitement plan) exc which the 1088 persors don gee [More importantiy there ie form called WA (Employees Tax withholding Exemption certifies). At the time of new hire itis employer's obligation to get this fox file and deduct the taxes accordingly Inreceptive payroll periods Contract to Hie: Ir means parson would be hires asa contract mployse for specie peri oF tm if thay find that you ‘are worth co be observed inslde the com pany then they wil cake you fora permanent role. LEmplyers are required to withheld federal income tax from the wages pao employees, The withheld amount is redted ts the employees’ individual income taxes. ‘the amount of feera! Income tox uithhels Se pend on fe factor: 2. Paytol period, 2. Employee martal seams, 3. Amount of wages, 4, Number of withholding alowances claimed bythe employee, and 5. Additional amounts th ployee requests to bewithhald ach employee should be provided with » Form W-4 to claim the approgriate number of withholding allowances anc identity martal status. The signed Form WA must be Kept 7 fe foreach employee. IF fan mployse daes not complete a Form Wl, the employer i requirad to withhold! tex a5 H the employee were a single person dating no withholding allowances. I net encugh taxis withheld ‘the employee may besubjectto perates Fedaral Unemployment Tax Act FUTA) The Federal Unemployment Tax Act (FUTA) provides federalstate insurance sytem for workers who lose thei jobs. Sociol Security and Medicare Tax Rates and Lint (id-Age, Survivors and Disablity Insurance (08S SSW (Socal Securty wage Board)