In practice
The employer withholds income and payroll taxes and may offer benefits. W2 is the route for consultants who cannot or do not want to work through their own company.
Postings usually state whether W2, C2C or both are accepted.
How it shows up in a posting
“Contract, W2 only, 6 months with extension.” The consultant must be an employee of a staffing firm or the client for the engagement.
Common mistakes
- Quoting a C2C-style hourly rate for a W2 engagement without allowing for employer costs.
- Not confirming whether benefits are included.
- Missing that “W2” may mean the client’s own employment, not the vendor’s.
Where this fits in a staffing workflow
Most of the day-to-day work around this term is finding the right requirements and getting a clean submission out quickly. MatchWire automates the sourcing, matching and resume tailoring steps and leaves the judgment calls to your recruiters.
Frequently asked questions
Who pays taxes on a W2 contract?
The employer withholds and remits taxes. The consultant receives a W2 form at year end.