Question: W2 Hourly vs. Corp-to-corp scenario

"ITIL Prime" wrote

Actually, since they are paying their half of the employment taxes (and they may have other benefits for you being an employee) you should be getting less than when you bill them as self-employed (even if you bill through your company).

I trust you were doing some kind of payroll/wages from your company to yourself, and that all payroll related taxes and forms/reports were or will be filed.

There's no tax downside to you.

You would want to be sure that as their employee - you aren't violating some company policy of working what would be considered "for the competition" when you do the same work for others. And your other clients might also want to know that you are employed by another company. I think that some open discussion and disclosure would resolve many future issues or problems.

No benefits are included (I still pay healthcare, etc). I was concerned about the amount of deductions I currently claim for my S- Corp (auto expenses, healthcare, etc), and if that might change by accepting W2-hourly. I suppose it wouldn't as I will still be collecting invoices to the S-Corp for other work. But if my only source of income becomes the W2-hourly, will I be precluded from deducting those expenses?

Yes, the company is fully aware that there are other ongoing projects that would I would be billing to my S-Corp. Please excuse my potential mis-use of terminology.

"ITIL Prime" wrote

The company can't deduct health insurance as it stands now.

Your mileage to and from that place of employment isn't "business" related, so that is the only issue that I see.

Got it- thanks.