Start by confirming who employs you, how you are paid, what deliverables you own and whether the agreement restricts other professional work.
W-2 contract
A staffing firm or employer places you on payroll for a defined engagement. Tax withholding is handled, but benefits, paid leave and assignment stability may be limited.
- Confirm benefits eligibility and waiting periods.
- Ask whether overtime is permitted and how it is approved.
- Understand assignment-end and conversion terms.
Corp-to-corp (C2C)
Your business contracts with another business. The rate may be higher because your company carries payroll, insurance, tax and administrative obligations.
- Confirm payment terms, invoicing cadence and late-payment remedies.
- Price insurance, unpaid time and operating costs into the rate.
- Review indemnification, exclusivity and subcontracting language.
Fractional work
You provide defined leadership or specialist capacity across a limited number of hours, outcomes or days. Strong scope boundaries are essential.
- Define outcomes, decision rights and availability windows.
- Separate advisory access from execution capacity.
- Use a clear change process when the scope expands.
Compare the real economics
Account for taxes, health coverage, retirement, equipment, insurance, unpaid leave, business development time and the probability of gaps between engagements.
Decision-support disclosure: Classification, tax and contract requirements vary by jurisdiction. Consult qualified legal and tax professionals for advice about your situation.