FAQs: Corp-to-Corp and W-2

 

  1. What is the definition of a full-time W-2 employee?
  • The IRS Definition of FullTime Employee. For purposes of the employer-shared responsibility provisions, a fulltime employee is, for a calendar month, an employee employed on average at least 30 hours of service per week, or 130 hours of service per month. (This does not constitute benefit eligibility. See Benefit Chart for specific eligibility details).

 

  1. Will my pay rate change?
  • Corp-to-Corp: No
  • W-2 Employee: Yes. If you become a W-2 employee, your hourly pay rate will decrease 20%-40%. Your federal, state and other required taxes will be withheld. You will be covered 100% under TSI’s Professional Liability and Workers Compensation policies.

 

  1. Will the cost of my clearances be covered by TSI as a W-2 employee?
  • Corp-to-Corp: No, you will continue to assume to cost of your clearances.
  • W-2 Employee: Yes. You will be eligible to have the cost of your clearances covered, beginning the first of the month after 1 full year as a W-2 employee (having averaged a minimum of 20 hours per week for that time period.) You will reimbursed up to $200 per eligible year towards the cost of your clearances.

 

  1. Will you offer any trainings?
  • Corp-to-Corp: No
  • W-2 Employees: Yes. Employees will receive required company training, but not professional training. There will be a flat dollar amount offered toward required continuing education training. You will be eligible the 1st of the month after 1 full year of service (having averaged a minimum of 20 hours per week for that period.)

 

  1. What happens if I don’t work in the summer? Can I file for unemployment?
  • Corp-to-Corp: No
  • W-2 Employee: Yes, you can apply for unemployment. The state where you live/work will determine your eligibility.

 

  1. What happens if I don’t want to accept an assignment offered by TSI? Will I be terminated?
  • No, you will not be terminated.

 

  1. Will TSI provide me with materials for the position in which I’m placed?
  • Corp-to-Corp: The Loaner Library process will continue as it is currently.
  • W-2 Employee: You will be able to check out testing materials from our Loaner Library at no charge. All client requests for materials that are not in our Loaner Library must be bought to the attention of your Account Manager.

 

  1. Will family members be eligible for benefits?
  • Corp-to-Corp: Not benefit eligible.
  • W-2 Employee: At their one year employment anniversary, if an employee qualifies (meeting an average of 30 hours per week for a full year) and enrolls in medical, dental, vision and certain voluntary benefits, the employee can also enroll their eligible dependents at the associated costs. Employee contribution will be deducted from the employee’s paycheck. Premiums are subject to change annually with open enrollment.

 

  1. Will there be a 401(k) plan?
  • Corp-to-Corp: No
  • W-2 Employee: Yes, employees will be eligible the first of the month after 1 full year of service and 1000 hours. We offer traditional and Roth 401(k) plans.

 

  1. Will employees be covered under Therapy Source’s Professional Liability policy?
  • Corp-to-Corp: No,you must continue to maintain own coverage.
  • W-2 Employee: Yes, you will be covered under the company’s policy.

 

  1. If I choose Corp-to-Corp, what is the cost to obtain my LLC?
  • Costs generally range from $125 – $350.

 

  1. Will I be eligible for annual pay increases?
  • There are no guarantees for annual pay increases for Corp-to-Corp or W-2 Employees.

 

  1. How often will I be paid?
  • Corp-to-Corp: You will continue to be paid monthly.
  • W-2 Employees: You will be paid twice per month (with submitted/approved billing.)

 

  1. Will I be able to speak with someone if I have questions about my caseload or position?
  • Yes, you will be able to speak with your Account Manager just as you do now.

 

  1. As a 1099, how much time will I have to convert to Corp to Corp? What can TSI do to help me get through the process?
  • You can switch to Corp-to-Corp status at any time. TSI recommends that you speak with your tax advisor for guidance with this.

 

  1. Once I have my own LLC am I restricted from promoting my services to any school that TSI has not introduced me to?
  • No.

 

  1. I would like to select W-2, but I have some wage attachments. How can I be assured that my pay structure and allocations are kept confidential?
  • An employee’s compensation is always kept confidential. Our Finance Director and Manager are the only ones with access to employee payroll.

 

  1. What happens if I have medical, dental or vision benefits through TSI and my assignment ends? Does TSI cover the cost of my benefits between assignments?
  • No, TSI does not cover the cost of benefits when an employee is not on assignment. The employee would be eligible to elect COBRA for benefit continuation. With COBRA, the employee is responsible for 100% of the premium cost plus a 2% administration fee.

 

  1. What do I need to do to remain a 1099?
  • Remaining a 1099 will not be offered as an option. The options will be to become a W-2 employee or to obtain your LLC and become a Corp-to-Corp.