What is a w2 contract?

A W2 contract is an employment agreement between an employer and an employee, where the employer withholds federal and state income taxes, Social Security, and Medicare taxes from the employee's paycheck. This type of contract typically signifies that the employee is a full-time, permanent employee of the company and is entitled to certain benefits such as health insurance, retirement plans, and paid time off.

Under a W2 contract, the employer is responsible for withholding and paying certain taxes on behalf of the employee, as well as providing them with a W2 form at the end of the year for tax reporting purposes. The employee is also protected by labor laws and regulations such as minimum wage, overtime pay, and workplace safety standards.

Overall, a W2 contract provides a level of stability and security for both the employer and the employee, as it outlines the terms and conditions of their working relationship and ensures compliance with tax and labor laws.