What does it mean to be hired as a “W-2 contractor”?

Being a W-2 contractor means that a staffing agency or employer engages you as an official employee, rather than you operating as an independent contractor (1099). This distinction holds significance in terms of employment structure and tax classification.

Classifying workers as W-2 provides a sense of stability and security due to certain labor protections and benefits afforded to employees. This arrangement also simplifies tax compliance, as the employer handles tax withholding and reporting on behalf of the employee.

Moreover, being a W-2 contractor can offer flexibility in work assignments and opportunities to gain diverse experiences across different projects and industries. It serves as a middle ground between full-time employment and independent contracting, providing benefits and flexibility to workers.

As a W-2 contractor at GloballyHired, you become an employee with us and our partner, Ascen, who assumes the role of the Employer of Record. This means we are responsible for withholding taxes from your paycheck, including income tax, Social Security, and Medicare taxes. Additionally, we offer benefits typical of traditional employment, such as health insurance, retirement, etc.

See more: What does it mean to be hired as a “permanent” employee?