Understand Your Options
Companies can hire in a variety of ways. The primary options are filling permanent job openings and contract or temporary job openings. Contract job openings can be part-time or full-time and of any duration from a single day to months at time or longer depending on the contract.
The Centrics Group works to connect you to the employer and placement type that best suits your needs and lifestyle.
The agency deducts all related taxes from your paycheck.
- Simplest option for you
- No bookkeeping other than submitting time sheets
- Some limited benefits may be available
- Limited ability to defer income if a 401(k) benefit plan is unavailable
- Deductibility of unreimbursed business expenses and medical insurance premiums is very limited
- Getting health insurance coverage can be a challenge if none is provided
- Any benefits package is likely to be less generous than that of a permanent employee
With a corp-to-corp contract, you will receive a higher hourly rate. In this case, you must have a registered corporation with a Tax ID number. Your paycheck will be paid to your corporation, not you as an individual, so you will need to have a checking account under that corporation’s name.
- No self-employment tax
- Using small business retirement plans, you can defer tax on a larger percentage of income
- Double taxation of earnings is avoided as compared to regular corporations
- Most complicated option as much more bookkeeping and tax reporting required
- More difficult to organize and dissolve
- Some states have a minimum tax you will have pay regardless of profitability
- You must receive at least some salary from the corporation, which means the corporation is subject to payroll taxes and filing
- S-Corp shareholders pay tax on undistributed profits
- If you don’t make the S-Corp election, you can get stuck with the 35% personal services corporation (PSC) flat tax.