A W2 contract generally refers to an agreement between a person under a recruitment agency or company and another company. The W2 person or the contractor works for the other company. The person can work for one company for a specific project at a time.
Today, in this blog, CloudVandana will give an overview of this contract and its benefits.
W2 contract is a type of agreement where a skilled person is hired by a staffing agency and placed in an organization mainly for short-term projects. It is a mix of independent contractors and employment contracts. When the person is hired as a contractor, the person works independently, following the organization’s guidelines but does not report to the clients the same way an employee says to the employer. A W2 candidate means a candidate found or employed and paid by an agency while performing the work given by the organization which is dealing with the staffing agency.
So the person is the employee of the staffing agency, but a contractor for the company the resource is working for. So this is the hybrid model of both an “ employee” status and a “ contractor” status.
These contractors are similar to full-time employees. The only difference is that, instead of working for the same company, the resources work for various client organizations. The contract can be made on a short-term or long-term basis.
The staffing agencies like CloudVandana always provide handpicked resources or developers to their clients for the best productivity. They also take the responsibility of recruiting, hiring, and placing the most suitable candidates to maintain long-term relationships with their clients.
The Benefits Of W2 Contractors
Let’s have a look at the benefits of these contractors.
- This is a cost-effective solution for all organizations across the globe.
- W2 contractors can seamlessly complete their projects in lesser time with their expertise compared to in-house developers.
- The consultants can easily adopt the cultures and workflow of the various organizations as they are always updated with the latest technologies and innovations.
- Organizations can experience the flexibility to check the expertise of the resources by hiring them short-term basis and then can extend the contract later.
W2 Contract vs. Full-Time Contract
The basic difference between these two forms of hiring is that the contract is for a limited period of time, whereas a full-time job is generally permanent. But in both processes, resources are considered employees.
In the full-time hiring process, people give their time, experience, and knowledge to a company on a full-time basis in exchange for a salary. On the other hand, in the W2 contract, resources give their time, experience, and knowledge to a company on-demand for a specific task or project.
Are you looking for remote developers for your project enhancement? CloudVandana, the reputed staff augmentation firm, can provide a large talent pool of handpicked developers from which companies can select their best team of developers to enhance their organization. Please schedule a call with us and share your requirements. Call us now.
Digital Marketing Manager at Cloudvandana Solutions