Hello All,
I have an opportunity to work on W2 in the US. I have always worked corp to corp before. I am wondering if someone could tell me the avg % of total income that is withheld when someone works on w2.
Thanks,
Stu
TAX WITHHOLDING ON W-2
Moderator: Mark T Serbinski CA CPA
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You will be subject to federal and possibly state income tax withholding based on your W4 submitted. The W4 outlines the number of exemptions you have (similar to a Canadian TD 1) and controls the withholding rate. Your rate will also be based on the income you are earning, with more tax % withheld the higher your income is.
Further, unless you are covered by CPP and working for a Canadian company in the U.S., you will be subject to 7.65% FICA deductions on the first $94,200 per year, and 1.45% after that.
Further, unless you are covered by CPP and working for a Canadian company in the U.S., you will be subject to 7.65% FICA deductions on the first $94,200 per year, and 1.45% after that.
Mark
Thanks very much Mark. I appreciate the info. One thing becomes clearer to me; it is better to be on a corp to corp unless the obvious trade off is getting a perm role in which case the move to US is going to be for GC and therefore a more permanent one. On that front, may I ask what is PERM. I have read on this forum that people have been discussing GC route that starts with this term"PERM". What does this exactly mean? I am sorry for being so ignorant.
Thanks, Stu
Thanks, Stu