Work Status Terms:
Work Status is a term used to describe the employment status of the consultant. This is critical because it dictates whether we can work with an individual consultant directly and what our limitations are. Below is a list of terminology pertaining to Work Status:
W2: A direct hourly employee. In this arrangement, TechRP will pay the consultant/contractor an hourly wage and taxes will be taken out accordingly when the consultant is paid. The consultant for that reason must be a US Permanent Resident, US Citizen, or Green Card holder.
H1-B Visa or “H1” for short: A consultant/candidate with an H1-B Visa must have a company that sponsors his H1-B Visa. H1-Bs can work in a W2 capacity but they can only do so for the company that sponsors and holds his/her H1-B Visa. In order for an H1-B Consultant to leave his/her company, he/she must have their H1-B Visa transferred to another company. This process requires an immigration attorney or internal legal counsel to apply for a Visa Transfer with the USCIS, who handles all immigration for the United States. USCIS stands for United States Citizenship and Immigration Services.
TN Visa: A consultant/candidate with a TN Visa is a Canadian citizen. In order for a Canadian Citizen to work in the US, they must have their Passport/Visa stamped as such at the US/Canadian Border. Under NAFTA (North American Free Trade Act), it’s quite easy to Canadian Citizens to gain entry into the US to work. They require a letter from the employer citing job duties and duration of employment.
Direct Corp to Corp: A consultant that has his/her own corporation. In this arrangement, TechRP will pay the Consultants corporation directly and no taxes will be taken out upon payment. In most cases the consultant has set up his/her corporation for the very purpose of Tax Flexibility.
3rd Party Corp to Corp: In this arrangement TechRP will works in a Direct Corp to Corp (see above) arrangement, but rather than just one individual owning his/her own company the company will have a “bench” or group of candidates. TechRP will utilize or contract with this Corporation or “vendor” as we call them for one of their consultants to engage in a contract assignment for TechRP. TechRP will pay the Corporation for that consultants services. Like a Direct Corp to Corp, no taxes will be taken out upon payment.
Contract: A contract is a temporary position, sometime full-time (40+ hours per week) temporary and sometimes part-time (less than 40 hours per week) temporary. TechRP predominantly, 99.9% of the time, works to fill full time contract engagements. In a contract situation, we are working in a Direct Corp to Corp (see above) arrangement with XYZ Client and placing a consultant on site or off site with XYZ Client for a specified duration at a specified hourly pay rate. The consultant we are placing can be our own W2 (hourly or salaried), a Direct Corp to Corp consultant, or a 3rd Party Corp to Corp consultant.
Direct Hire/Permanent Hire: A direct or permanent hire is a candidate placement where the end client actually brings the submitted candidate on board directly – they pay them a permanent salary and TechRP gets a one lump fee for locating the candidate.