I'm saying any money paid out to individual US tax payers for doing work should be W2. Businesses can contract labor from other businesses and deduct 100% of the expense only if the labor supplied is W2.
W2 is much more than employment taxes... W2 means the company conforms to our labor laws, receive benefits, workers comp, unemployment insurance, social security. Most importantly are covered under the business' insurance policies for the work they perform and the employee is verified to be eligible to work in the USA. W2 insures conformance with the Buy American clauses in govt contracts.
Currently contracting foreign labor can cost less than a US employers matching contribution of payroll taxes. Corporations would be crazy not to exploit the labor differential and offshore the maximum they possibly can.
W2 is much more than employment taxes... W2 means the company conforms to our labor laws, receive benefits, workers comp, unemployment insurance, social security. Most importantly are covered under the business' insurance policies for the work they perform and the employee is verified to be eligible to work in the USA. W2 insures conformance with the Buy American clauses in govt contracts.
Currently contracting foreign labor can cost less than a US employers matching contribution of payroll taxes. Corporations would be crazy not to exploit the labor differential and offshore the maximum they possibly can.