Employment Definitions: Internal Revenue Service

Employment Definitions
1099 Employee – A 1099 employee is in most cases a temporary employee

(technically, not even an "employee"). Because they are not permanent, they do not
need to complete a W-4 or have the employer withhold taxes. They are responsible
for paying their taxes directly to the IRS. (Internal Revenue Service). The IRS
requires that the employer report the earnings paid on a form 1099. The IRS would
rather put the burden of tax withholding on the employer and therefore has fairly
stringent rules regarding when someone can be considered a 1099 employee.
Announced – Job seekers that are ready to work in 30 days and appear on the Holists.
Corp-to-Corp – Indicates that the employer would prefer to deal directly with another
corporation. The main reason for this preference is to avoid some of the potential
liability that might exist in dealing with an independent contractor on a 1099 basis.
This would include corporations dealing directly with other corporations or
corporations dealing with individuals who have incorporated.
EB-1 – Employment-based immigration category for aliens of extraordinary ability.
EB-2 – Employment-based immigration category for aliens with advanced degrees or
exceptional ability.
EB-3 – Employment-based immigration category for aliens with bachelor's degrees.
Most immigrants become residents through this category.
H-1B – Visa for temporary skilled workers (sponsored).
H-4 – Visa for family members of H-1B Visa holder.
Independent – The employer is willing to hire a temporary employee on either a 1099 or
W-2 Basis.
The IRS classifications of workers are independent contractors or employees
according to the "common law" standard. The common law standard holds that if an
employer controls and directs, or has the right to tell a worker how, when, and where
to work, then the worker is an "employee". A worker free from such direction and
control can be classified as an "independent".
J-1 – Visa for doctors and researcher usually tied to some sort of research grant or
exchange program.
J-2 – Visa for the spouse of an J-1 Visa holder.
Job seeker – Candidate looking to better their employment opportunities. There are three
types of job seekers:
• Announced are job seekers that are ready to work in 30 days and appear
on the Holist.
• Passive Public is those job seekers that are not actively looking for a job
but would entertain the right opportunity. Passive Public job seekers names
display on the Holist, but they will be on the passive list.
• Passive Confidential is those job seekers that do not want anyone to
know who they are. Job seekers can chose to be confidential and they will
show up in the passive list as a confidential candidate.
Tax Term – Tax Terms include:
• Contract - W2 – Will be working as a contract W-2 employee for the company.
• Contract to Hire - W2 – Will be working as a contract W-2 employee for the
company with the option to hire.
• Full-time – Will be working as a full-time W-2 employee for the company.
• Contract - Independent – Will be working as a contract 1099 employee for the
company.
• Contract to Hire - Independent – Will be working as a contract 1099 employee
for the company with the option to hire.
• Contract - Corp-to-Corp – Will be working on contract with or through another
corporation.
• Contract to Hire - Corp-to-Corp – Will be working on contract with or through
another corporation with the option to hire.
TN – Visa for temporary workers authorized under schedule 2
Of NAFTA. (North American Free Trade Agreement)
W-2 – A W-2 employee is an employee whose taxes are withheld by the employer and
whose earnings are reported to the IRS at the year-end via a W-2. The W-2 employee
completes a form W-4 at the beginning of their employment to instruct the employer on
how to withhold taxes. This eliminates any possible issues that may arise with the IRS
regarding employment status.
W-2 / 1099 – The position can be filled by either a W-2 or 1099 employee
Nonimmigrant (Temporary) Visas
If you're coming to the U.S. for a short period of time for business, travel and some types
of temporary work, you will need a nonimmigrant visa to enter the country. (B1, B2, F1,
H-1B, J1, TN work permit)
• Visitor Visas (B-1 (business), B-2 (vacation))

• Temp. Empl. Visas (E-3 specialty occupation worker 4 Australians, H-1B, R-1-
Religious workers seeking to enter the U.S, TN Visa.)
• Traders / Investors (E-1 Treaty Trader Visas, E-2 Treaty Investor visas,
• Intra-Comp. Transfers (L-1 intra company transfer visas)
• Extraordinary Ability (O-1 visa is a temporary work 4 Extraordinary ability)
• Athl. Perform. / Artists (P type visas 4 athletes and entertainers who do not meet
the "extraordinary ability")
• Students / Trainees (F-1 student visa, H-3trainees-come to the U.S. to receive
training in many different activities,)
Immigrant (Permanent) Visas
If you want to live and work permanently in the U.S., you will need an immigrant visa.
These types of visas lead to a green card. (E1, E2, E3, E4, E5,)
1) Employment based immigrant visa
 EB-1: for aliens with extraordinary ability, outstanding professors and researchers, or
multinational business managers and executives.
 EB-2: for aliens with exceptional ability or aliens with advanced degrees
(employer/sponsor required)
 EB-3: for professional workers (with university degree), skilled workers and
unskilled workers (employer/sponsor required)
 EB-4: for religious workers
 EB-5: for aliens who invest $1 million and create 10 new full time jobs (in limited
situations, an investment of $500,000 and the creation of 5 new jobs is acceptable).
2) Family Based immigrant visa
• IR-1: Spouse of a U.S. Citizen - Learn More

• IR-2: Unmarried Child Under 21 Years of Age of a U.S. Citizen
• IR-3: Orphan adopted abroad by a U.S. Citizen - Learn More
• IR-4: Orphan to be adopted in the U.S. by a U.S. citizen - Learn More
• IR-5: Parent of a U.S. Citizen who is at least 21 years old
Diversity Immigrant Visa Program or "green card" lottery

W-2 Employee
Definition:
You are an employee of the broker selected by your client. Your wages are subject to
the same tax withholdings as a regular employee.
The Simplest Option: W-2
You are basically an employee of the third-party broker hired by your client, although
any benefits package offered is likely to significantly less than if you were a regular
employee of the client company.
Usually the client has a head hunter, broker or other third-party service that will act as
the intermediary between you and them. Your client may prefer this option because it
mitigates the risk that you or IRS will come to them later and claim you were really
an employee.You will receive wages from the broker with the requisites taxes
withheld. The broker will probably receive 15-35% above your hourly rate to cover
its expenses. Something to keep in mind when you're negotiating your rate.

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Employment Definitions: Internal Revenue Service

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What are the different types of visas mentioned?

What is the difference between a W-2 employee and 1099 contractor?

Employment Definitions

1099 Employee – A 1099 employee is in most cases a temporary employee

TN – Visa for temporary workers authorized under schedule 2

Of NAFTA. (North American Free Trade Agreement)

• Visitor Visas (B-1 (business), B-2 (vacation))

Immigrant (Permanent) Visas

1) Employment based immigrant visa

2) Family Based immigrant visa

• IR-1: Spouse of a U.S. Citizen - Learn More

Diversity Immigrant Visa Program or "green card" lottery

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