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How does long-term W2 contract work?

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  • How does long-term W2 contract work?

    Hi, I am completely new to the topic of W2, could someone please clarify it for me?

    Currently I work full-time on H1B, but my job will be terminated in February. If I do not find a new job by that time, I will transfer to H4 as a dependent to my H1B husband.
    I received a conditional job offer from a reputable company for a long-term W2 contract. Unfortunately, I have no clue how W2 works. Who is going to "own" my H1B on such contract? I assume that working on a contract while on H4 would be illegal, is it correct?
    I was told that there are agencies that hire consultants and sponsor H1B while the consultants work full-time on contracts for other companies. Is it legal? If so, is it what I am supposed to do in this situation? Any advice where I can find information about these agencies?

  • #2
    W2 is a form that companies give to their employees showing wages paid and taxes withheld every year. Employees use this to file their tax return. You must be getting this from your employer every year too.

    In consulting context, working on W2 is being an employee of the firm. For you they will hold your H1. This is in cotrast with working as an independent contractor and receiving form 1099 from the company. Only people with EAD, GC or USC's can do that.

    Working on H4 will be illegal.
    This is my opinion and not legal advice.


    • #3
      So, basically it means the traditional employment?

      If my current employer lays me off and the new employer does not sponsor my H1B, is there a way I can maintain EAD? It's a silly question, but I really don't know the answer.


      • #4
        You will not be able to get an EAD unless you have an AOS application pending based on your other post.

        I am not a lawyer and you need to consult with one to validate any info posted on the forum and discuss your case specifics. H1b Question? Read the FAQ first.