Contract Vs Direct Employment
AESI provides contract, contract-to-direct, and direct placement services to our clients and candidates.
Contractors may work with AESI in two different ways: as a W-2 employee of AESI, or in a corp-to-corp relationship. The candidate becomes a W-2 employee of our client in a direct or permanent placement and may be eligible to receive the employee benefits that AESI offers including Medical, Dental, and Vision Insurance, direct deposit, and 401(k).
A corp-to-corp relationship is literally between two corporations. The contractor must have formed a corporation and be an employee of that corporation in order to enter into a corp-to-corp relationship with AESI.
AESI traditionally does not work with 1099 workers, also known as “independent contractors”. We prefer to have contractors become a W-2 employee to build stronger teams that benefit the contractor, the client, and AESI.
For some, the thought of living on the “wild side,” in other words “contracting,” is a bit frightening. Others cannot bear the thought of signing on the dotted line with an employer.
Here is a brief look at the advantages of contract vs direct employment:
- Opportunity to choose the technologies you want to work with and then move on to something new at the end of the contract.
- Ability to work a contract, take a few months off, then begin the next contract.
- As a W-2 employee of AESI, you will have access to medical, dental, and vision insurance, direct deposit, and the opportunity to participate in the 401(k) plan.
- As a corp-to-corp contractor with AESI, you may be able write-off many of your business expenses, through your business tax filing, including the purchase of the tools you want to use.
- More stability.
- Employer will usually support career/technology development training.
- Full line of benefits including, in some cases, stock options, 401(k) matching and bonuses.
- A sense of belonging. Contractors may feel less a part of the team
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