Computer Contractor – What does corp to corp mean when used by computer services contracting firms?

I'm working as a Teradata computer contractor and when headhunters call or send a recruiting email they ask if I want to work corp to corp. I don't know what that means.

Typically they want you as a self employed person to be incorporated, and their corporation will contract with your corporation. You will have sole responsibiltiy to pay taxes (Federal income tax, collection and remission of sales tax, Workers Comp, etc.) Your corporation must issue you either a W1099 Miscellaneous-Income form or a W-2 Employee Wages and Taxes withheld.

It is not as perplexing as it sounds. I as a self-employed person, got incorporated as an "S" corp ($700) then issued myself a W1099 to pay myself at tax time. Of course, every quarter, I remitted my fed and state income taxes as I paid myself throughout the year.

It means they are willing to work with your employer directly. They will pay to your employer. If you own the company, some companys will agree to work with your company.


Comments are closed.