0

If a job description requires candidates need to be able to work on a W2 basis, what does it mean?

What does it prevent?

For example, does it mean no contractor from a consulting company? Is there any way for a contractor from a consulting company to work on a W2 basis, so that they can qualify for such positions?

Some consulting company told me that if I can find a contract position from another company, then they can hire me and send me to work there. I would like to know what positions are contract positions when searching in the job descriptions.

  • @Joe: Sorry for my misunderstanding. My question is "Is there any way for a contractor from a consulting company to work on a W2 basis, so that they can qualify for such positions?" – Tim Oct 18 '17 at 16:43
  • 1
    "Some consulting company told me that if I can find a contract position from another company, then they can hire me and send me to work there." Giant red flag in my book, but that's a bit of a separate issue perhaps. – Lilienthal Oct 18 '17 at 17:07
  • 1
    @Tim, That consulting company is just trying to scam you (unless they're willing to do the visa paperwork for you). Do not follow their advice (again, if you do not need a visa)!!!! But even if you need a visa, try to see if the original company would be willing to sponsor you. There is absolutely zero point in going through a consulting company if the client company is willing to sponsor you themselves (or if you don't need sponsoring in the first place). – Stephan Branczyk Oct 18 '17 at 17:15
  • @Lilienthal Thanks. It may help to clarify that they said that after I told them that I would search for both a contract position and a permanent position for myself, and deferred the training they wanted me to pay to participate in. Some other consulting company doesn't need me to pay for training, but I just want to learn on my own first. So I was wondering what I should be concerned here? Should I open another post to ask about that? – Tim Oct 18 '17 at 17:19
  • @Tim That's likely too specific to work as a question but you can try. I would probably encourage you to ask some of the fine people in The Workplace Chat for their input and you can also provide more detail there than comments typically allow. Chat can also help in crafting an on-topic question if you want to bring it back to the main site. – Lilienthal Oct 18 '17 at 17:56
8

"requires candidates need to be able to work on a W2 basis"

They are looking for an employee, they are not looking for somebody who works for a different company, or who is an independent contractor.

why? That is their preference. They may want to give you additional duties that they don't want contractors to do.

They could even have a requirement. The government is giving them a contract to complete a task and is telling them that they must keep 51% of the work in house. This is done when they won because they are a small business and the government wants to keep them from taking a 10% and then having all the work done by a big company.

Is there any way for a contractor from a consulting company to receive W2, so that they can qualify for such positions?

They want to hire a w2 position; they don't want to send a 1099 to a consulting company who then gives you a W2. So, no.

Example: Bob's programmers want to hire an employee. So they advertise on a job board they include the line: "candidates need to be able to work on a W2 basis"

Bob's programmers doesn't want a contract with we_are_coders. If you aren't willing to quit we_are_coders and become an employee of Bob's programmers, then don't apply.

  • Thanks. Sorry for my misunderstanding. My question is "Is there any way for a contractor from a consulting company to work on a W2 basis, so that they can qualify for such positions?" – Tim Oct 18 '17 at 16:43
  • 1
    @JoeStrazzere yes some companies do hire contractors; but some don't. In this case the company in question doesn't want to. – mhoran_psprep Oct 18 '17 at 17:35
4

does it mean no contractor from a consulting company? Is there any way for a contractor from a consulting company to receive W2, so that they can qualify for such positions?

Absolutely. It depends on who's advertising the job. If the end-client is advertising it then no, but if a consulting company is advertising the work and is intending to contract you to the end-client then that's what they're looking for.

For example,

I work at a large (Fortune 10) company. I've worked there almost 2 years. But they're not my employer. My employer is a consulting company who bills the large company I work AT.

I get a check 2x a month and taxes are taken out. When I apply for loans, my employer is not the large company but the consulting company.

In that respect, I am a "W2 contractor" in that I'm contracted (by my actual employer) to another company.

On the other hand, if you work for a consulting company and you're a contractor to a certain company and that certain company advertises for W2 employees, you can't go to work for the same company that is the customer of the consulting company that's contracting you. In that case, someone would likely get sued.

  • Thanks. Sorry for my misunderstanding. My question is "Is there any way for a contractor from a consulting company to work on a W2 basis, so that they can qualify for such positions?" – Tim Oct 18 '17 at 16:43
  • Yes, what Joe said. But as I said, it depends on who is advertising the job. If it's the end-customer advertising it, like UPS, then they're looking for a permanent employee. But if it's not the end customer advertising it (say, a consulting company is) then in that case, they would hire you as an employee and contract you out to UPS. At that point you would be considered a W2 employee that's also a contractor. – Chris E Oct 18 '17 at 16:51
  • @ChrisE It is the end-customer advertising it. – Tim Oct 18 '17 at 16:52
  • @Tim and you're working for a company that's contracting with that end-customer? – Chris E Oct 18 '17 at 16:53
  • @ChrisE Not yet. I don't have an employer right now. I don't know yet what kind of employer I can find. But consulting company is a possible option. Some consulting company told me that if I can find a contract position from another company, then they can hire me. I would like to know what kind of position are contract position. – Tim Oct 18 '17 at 16:55
0

If a job description requires candidates need to be able to work on a W2 basis, what does it mean?

It means that they want to hire an employee rather than an independent contractor. Employees need to be given W-2 forms.

While I'm loathe to quote Wikipedia, they provided a decent summary of the differences:

The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees is significantly higher than the costs associated with hiring an independent contractors due to federal and state requirements for employers to pay Social Security, Medicare and unemployment taxes on employees. Likewise, employees are protected from being fired without cause, and if fired or let go for other reasons are entitled to unemployment benefits, whereas independent contractors have neither protection nor entitlement. Employees are also entitled to receive overtime pay for work performed over the 40-hour-per-week standard, whereas independent contractors may work any number of hours (including far above this standard) with no change in pay.

An independent contractor can be someone who's independent (typically self-incorporated) and who the client company pays directly, which will require the company to issue the contractor a form 1099. But they could also be getting contractors through a consulting company and those external consultants can be working as employees of the consulting company or they could themselves be working under 1099 status. Whether the client company has to send 1099 forms to the consulting company will depend on numerous factors.

So in short, if a job description mentions "W2 only" that means that independent contractors and consulting companies need not apply because they want to hire a full employee.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.