This is the most common of the contract engagements. AVID will automatically withhold and pay all of the necessary employee income taxes required by the IRS. These taxes include: Federal Income Tax, State Income Tax, and FICA (Social Security and Medicare). In addition, AVID will pay all of the necessary employer taxes, to include: FICA (Social Security and Medicare), FUTA (Federal Unemployment Tax), and SUTA (State Unemployment Tax).
These taxes will be deducted from your paycheck, no different as if you were a full-time/permanent employee. At year’s end, AVID will provide a contractor with a W2 reflecting the annual gross pay less Social Security and Medicare taxes. It’s your responsibility to then file your taxes with the IRS.
- This is the easiest and simplest contract option.
- No bookkeeping needed other than submitting timecards
- Some health insurance may be available.
- Limited ability to defer income if a 401(k) benefit plan is unavailable.
- Limited ability to deduct non-business reimbursed expenses and medical insurance premiums.
- Paying additional costs for health insurance coverage.
- Limited in receiving other full-time employee benefits such as life and disability insurance, paid holidays or time off.
If you have any additional questions please feel free to contact one of the IT recruiters at AVID Technical Resources.