VedyanOctober 20, 2026 · 7 min read · Vedyan team
When you hire an IT contractor through a staffing partner, the role is usually offered on one of three models: W2, corp-to-corp (C2C) or 1099. The model affects what you pay, who carries the employment obligations and how quickly a consultant can start. This guide explains the differences in plain terms.
W2 contract
On a W2 contract the consultant is an employee of the staffing firm, not of your company. The staffing firm runs payroll, withholds taxes, pays the employer share of payroll taxes and provides any benefits it offers. You pay the staffing firm a single hourly bill rate.
- Simplest option for most clients: one invoice, no payroll work
- Employment obligations sit with the staffing firm
- Common for long-term and on-site roles
- Usually the highest bill rate of the three, because the firm carries payroll costs
Corp-to-corp (C2C)
With C2C, the consultant works through their own corporation or LLC. That business invoices the staffing firm, which invoices you. The consultant's company handles its own taxes and insurance.
- Often used by experienced independent consultants
- Can widen the candidate pool for niche skills
- The staffing firm should confirm the consultant's business is legitimate and insured
- Some clients and government contracts do not allow C2C, so check your policy first
1099 independent contractor
A 1099 contractor is self-employed and is paid without tax withholding. Classification rules for independent contractors are strict, and misclassification can create tax and legal exposure. Many enterprises limit 1099 engagements for that reason.
How to choose
- Choose W2 when you want the least administration and the clearest compliance position
- Consider C2C when you need a hard-to-find skill and your policies allow it
- Use 1099 carefully, and only where the role genuinely fits independent-contractor rules
- For any model, agree the bill rate, overtime terms, notice period and conversion terms up front
How Vedyan helps
Vedyan offers W2, C2C and 1099 engagements, plus contract-to-hire and direct hire. We confirm work authorization, run background checks and handle onboarding paperwork, so your team can focus on the work.
This article is general information, not legal or tax advice. Talk to your legal or tax adviser about your specific situation.