W-2 employee overview
A W-2 employee is someone employed by a US company or organization. Each year, they get a W-2 form to show their income and the taxes taken out.
W-2 employees are not contractors or freelancers. They have rights and benefits in the US, like health coverage, paid breaks, job loss benefits, and insurance for workplace injuries. This concept is for the US and might not match rules in other countries.
Understanding the W-2 tax form
Form W-2 states how much your job paid you and the taxes its accountant department took out. Every worker gets a W-2 from their employer, but contractors get a different form (Form 1099-NEC). Employees use the W-2 form when doing their taxes with the IRS (Internal Revenue Service).
Benefits for W-2 employees
W-2 worker benefits are the additional perks and extras, aside from direct labor pay, that companies offer their employees. These benefits include:
Medicare and social services taxes (FICA taxes)
Insurance for job injuries
Job loss benefits
Health plans, sometimes special ones based on company size
Time off under the Family and Medical Leave Act (FMLA)
Disability coverage
Retirement savings options
Getting a W-2 form
As an employee, you can expect that your employer gives you a W-2 form every year by January 31st. If you can't get it from them, the IRS can help. The Internal Revenue Service gives you a copy of the form if you haven’t received one.
Copies of the W-2 form
You, your employer, and the IRS get copies of your W-2.
Copy A – should be sent to the Social Security Office by tax day.
Copy B – should be saved until you use it for your taxes.
Copy C – should be stored by you for at least three years.
Copy D – should be kept by your employer.
Copy 1 – should be sent by the employer to local tax offices if needed.
Copy 2 – should be kept by you for local tax offices if needed.
If you have more than one job, you get a W-2 from each employer. Using multiple W-2s for taxes is okay. At the same time, it's rare to get many W-2s from one employer. The latter can happen in some particular cases, for example, if the company was sold.
For Non-US Workers
The W-2 is for US taxes. If you're from another country but work for a US company, you might get Form 1042-S which you need to include in your taxes.
If you work in another country for a US company, you usually pay taxes to your local government. However, in the US company might still take out US taxes. Check for agreements between the US and your country to avoid double taxation.
W-9 form
In the United States, Form W-9, officially titled "Request for Taxpayer Identification Number and Certification," is used in specific tax situations. Namely, it's for businesses to get tax details from freelancers who are US citizens or tax residents, no matter where they are.
Purpose of Form W-9
Form W-9 is primarily used by individuals and entities, such as freelancers, independent contractors, and businesses, to provide their taxpayer identification number (TIN) to entities that will pay them income during the tax year. The TIN can be a Social Security number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN).
The details provided on the W-9 are then used by the paying entity to fill out other tax documents, like Form 1099-MISC, which reports non-employee compensation.
In simple words, US businesses don't withhold tax or give benefits to freelancers. But the IRS wants to track what freelancers earn. Businesses report payments over $600 to freelancers using Form 1099-NEC, and they use Form W-9 to get the freelancer's tax ID.
If a US business works with a freelancer who isn't a US citizen or tax resident, they use Form W-8BEN or W-8BEN-E.
When is Form W-9 used?
Usually, clients or financial institutions will ask for this form. It's not sent to the IRS. Instead, return it to the person who asked for it and keep a copy. Here is a wider list of situations when you should use Form W-9:
For independent contractors and freelancers. Businesses request a W-9 from non-employees they pay for services to ensure they have the necessary details to report the payments.
For interest, dividend, and broker transactions. Financial institutions might request a W-9 for certain transactions.
For debt cancellation. If a debt owed by an individual or business is canceled, the creditor may request a W-9 from the debtor.
For real estate transactions. In some real estate transactions, a W-9 might be requested to report payments and transactions to the IRS.
Where do you get Form W-9?
You can obtain Form W-9 directly from the U.S. Internal Revenue Service (IRS). The simplest way to obtain Form W-9 is to download it from the official IRS website. You can also visit a local IRS or federal government office to pick up various tax forms, including Form W-9. However, if a business or individual needs you to complete a Form W-9, they will often provide one for you.
When you have the form, you can fill it out manually, or if you've downloaded it from the IRS website, you may be able to fill it out electronically and then print and sign it. Always ensure you're using the latest form version, as the IRS can update it.
How do you fill in Form W-9?
Filling out Form W-9 is relatively straightforward, but it's essential to provide accurate information. Here's a step-by-step guide on how to fill out the form:
Name. Enter your full name as shown on your income tax return. If you operate a sole proprietorship and your business has a separate name (a "doing business as" name), you'll put that in the next line.
Business name. If you have a business name, trade name, DBA name, or disregarded entity name, you'll put it here. If not, just leave it blank.
Federal Tax Classification. Check the appropriate box for your tax classification (e.g., individual/sole proprietor, C Corporation, S Corporation, Partnership, Trust/estate, Limited Liability Company, etc.). If you're an LLC, you'll also need to specify the tax classification (C=C corporation, S=S corporation, P=Partnership).
Exemptions. If you are exempt from backup withholding and FATCA reporting, enter the appropriate codes in the boxes. Most individuals do not fill out this section unless they've received a specific notice from the IRS.
Address. Provide your address.
City, state, and ZIP. Fill in your city, state, and ZIP code.
List account number(s) here (optional). This is only used when the W-9 is provided in relation to a specific account, and the requester wants to associate the form with that account. You can usually leave this blank.
Part I – TIN (Taxpayer Identification Number). If you're an individual, this will be your Social Security Number (SSN). If you're operating with a business entity (like an LLC or a Corporation), it might be an Employer Identification Number (EIN).
Part II – Certification. Read the certification carefully. If everything is accurate, you'll sign and date the form. By signing, you're certifying, among other things, that the TIN you're providing is correct and that you're not subject to backup withholding (unless you've previously been notified by the IRS that you are).
Signature and Date. Sign your name and date the form.
Form W-9 is a critical tax form, and any false statements can result in penalties. It's crucial to ensure the information provided on the form is accurate and up-to-date.
Note: This summary is for information only. Always check the IRS website or consult a tax expert for guidance.
Web architecture
Software architecture is the fundamental structure of a software system, encompassing the components, their relationships, and how they interact. It serves as a blueprint, guiding the development process and ensuring the system meets its intended goals.
Think of it as the architectural blueprint of a building: it outlines the structure, components, and how they work together, but without the specific details of interior design or electrical wiring.
Architecture definition
Web architecture is the structural design of a website or web application, encompassing the arrangement, organization, and interaction of its components. It defines the relationship between different elements, such as pages, databases, and servers, to create a cohesive and efficient digital experience.
Architecture components
Architecture components are the fundamental building blocks of a software system. They represent distinct functional units with well-defined interfaces. These components interact to achieve the system's overall goals. Key types of architecture components include:
Presentation layer. The user interface, responsible for interaction with the user.
Business logic layer. Handles the core business rules and processes.
Data access layer. Manages interaction with the database.
Integration layer. Connects to external systems and services.
Security layer. Protects the system from unauthorized access.
Caching layer. Improves performance by storing frequently accessed data.
Logging and monitoring components. Collect and analyze system data for troubleshooting and optimization.
These components are designed to be modular and reusable, allowing for flexibility and scalability in software development.
Infrastructure components
DNS (Domain Name System) translates human-readable domain names into machine-readable IP addresses. It's the phonebook of the internet, directing users to the correct servers.
Load balancers distribute incoming traffic across multiple servers to prevent overload and ensure optimal performance.
Caching services involve storing frequently accessed data in memory for faster retrieval.
CDN (Content Delivery Network) is a geographically distributed network of servers that deliver content to users based on their location.
Data storage and processing
Databases store and manage data. They can be relational (structured data) or NoSQL (unstructured or semi-structured data). They are essential for storing user information, product catalogs, and other critical data.
Data warehouses are specialized databases designed to store and process large amounts of data for analysis. They are used for business intelligence and reporting purposes.
Application components
Web app servers are software applications that handle client requests and generate dynamic content. They interact with databases to retrieve and process information and then send the appropriate response to the client.
Types of web architecture
Web architecture refers to the structural design of a website or web application. There are several primary types:
Monolithic architecture is the traditional approach where all components of an application are tightly coupled and deployed as a single unit. While simple to develop, it becomes challenging to maintain and scale as the application grows.
Client-server architecture separates the user interface (client) from the application logic (server). The client interacts with the server to request data and services.
Three-tier architecture is an extension of client-server architecture. It introduces a middle tier between the client and the database, handling business logic.
Service-oriented architecture focuses on reusable services that can be combined to build applications. It promotes modularity and flexibility.
Microservices architecture is a modern approach that breaks down an application into small, independent services. Each service focuses on a specific business capability and can be developed, deployed, and scaled independently.
Serverless architecture offloads the management of servers to a cloud provider. Developers focus on writing code, without worrying about infrastructure.
Hybrid approaches combining elements of different architectures are also common in modern web development.
What about frontend and backend?
Frontend and backend aren't architectural types, but rather components within a web architecture.
Frontend. The user interface of a web application, responsible for the visual presentation and interaction. It's typically built using HTML, CSS, and JavaScript.
Backend. The server-side of a web application, handling data processing, business logic, and database interactions. Technologies like Python, Java, Ruby on Rails, and Node.js are commonly used.
These two components work together to create a complete web application.
Criteria of web architecture
Performance. How quickly the application responds to user requests. The ability to handle increasing loads without compromising performance. The amount of work a system can accomplish in a given time period.
Reliability. The system's uptime and accessibility. The ability to continue operating despite failures. Graceful handling of unexpected errors.
Maintainability. Breaking down the application into reusable components. Ease of testing individual components and the overall system. Clear and well-documented codebase.
Security. Safeguarding sensitive user information. Controlling access to system resources. Identifying and addressing security weaknesses.
Cost-Efficiency. Efficient use of hardware and software resources. Avoiding unnecessary costs.
By adhering to these criteria, developers can create web applications that are efficient, reliable, secure, and maintainable.
What specialists create web architecture?
Creating a robust web architecture requires a team of skilled professionals. Here are the key roles:
Software architect. Oversees the overall design and structure of the system, making high-level decisions about technology choices and system components.
System architect. Focuses on the technical infrastructure, including hardware, networking, and system integration.
Web architect. Specializes in designing the architecture specifically for web applications, considering factors like scalability, performance, and user experience.
Solution architect. Bridges the gap between business requirements and technical implementation, ensuring the architecture aligns with business goals.
Database architect. Designs the database schema, ensuring data integrity and performance.
Additionally, roles like UI/UX designers, security engineers, and DevOps engineers contribute to the overall architecture by considering factors like user experience, security, and deployment.
Work permit
Definition of a Work Permit: A work permit is an official document granting authorization to individuals to seek employment and legally earn in a foreign nation. It is common for countries to mandate either permanent or temporary work permits for those wishing to work within their territories. Acquiring this permit involves a structured application procedure.
Application process for a work permit
The procedure to apply for a work permit varies globally. Let’s take the U.S. and the EU as examples.
U.S. work permit application
In the United States, the work permit is referred to as the Employment Authorization Document (EAD) or Form I-766, which is submitted to the United States Citizenship and Immigration Services (USCIS). Possessors of this document are permitted to work legally in the U.S., primarily on a temporary basis. Along with the permit, foreign workers receive a Social Security Number (SSN), ensuring protection from discrimination based on immigration status under U.S. law.
U.S. citizens and permanent residents are exempt from requiring a work permit. Moreover, if a U.S. company hires someone remotely or via an employer of record, a work permit is not necessary.
Applicants must complete Form I-765 and submit it with supporting documents like passport copies, U.S. visa, previous work permits if any, I-94 travel record, and other specific documents. For detailed information on various work visas, refer to the respective sources.
Certain individuals in the midst of obtaining the aforementioned documents may qualify for a work permit. Additionally, various categories, like students with off-campus jobs linked to international firms, are eligible for work permits.
Employers sponsoring employee relocations to the U.S. must adhere to the Alien Labor Certification prerequisites set by the Department of Labor (DOL). Note that the USCIS will deny work permits to tourists or those without valid documentation.
EU work permit
In the European Union (EU), a work permit is a formal document that grants non-EU citizens the right to work legally within an EU member state. The main objective of this permit is to regulate and manage employment opportunities for individuals from outside the EU.
General principles
The EU introduced the Single Permit Directive to unify the process, allowing third-country nationals to reside and work in a member state. Upon approval, individuals receive both residence and work permissions.
EU citizens have the right to work in any member state without the need for a work permit due to the principle of freedom of movement.
Each EU member state may have its specific requirements and processes for granting work permits to non-EU nationals. Thus, it is crucial to refer to national regulations when considering employment in a particular country.
Application process
Eligibility. Applicants should have a confirmed job offer or employment contract in the EU member state they wish to work in. Some states may require employers to prove that no EU citizen is available to perform the job (a labor market test).
Documentation. Necessary documents often include a valid passport, job offer or employment contract, proof of no criminal record, and health insurance, among others.
Duration. The validity of a work permit varies but is typically linked to the duration of the employment contract. It may be renewable.
Blue Card. The EU Blue Card is a special work permit issued for highly skilled non-EU citizens, allowing them to live and work in an EU member state. It comes with certain privileges, such as shorter processing times and the possibility of moving to other EU states under specific conditions.
Q&A: Other things you need to know about work permits
1. Is a work permit mandatory worldwide?
Yes, in most cases. Each nation has its regulations and criteria for work permits. For instance, European Union nations have a unified system. In France, employers must demonstrate the absence of local expertise, while in Germany, job-seeker visas are available. The U.K. and Singapore offer diverse routes for work permit applications.
2. What is the duration of a work permit's validity?
The U.S. EAD typically spans one year, but the duration varies based on other visa statuses.
3. Is a work permit synonymous with a work visa?
No. A visa usually grants entry and residence in a country for a stipulated duration. Some visas allow work, like digital nomad visas. Conversely, a work permit specifically grants the right to earn in a foreign land, occasionally irrespective of visa status.
4. What if one works without a permit?
Operating without a valid work permit in the U.S. breaches federal and state regulations. Consequences include complications with green card applications, re-entry bans, and potential future visa restrictions. It's crucial to remember that legal repercussions differ by nation. For secure and accurate work permit applications, consider consulting an immigration attorney.
5. How long after the application will I wait for a work permit?
After sending your work permit application to USCIS, expect a response in about 2–7 months. Certain application types, such as those for asylum, may be processed faster. Within 2-3 weeks of submitting, USCIS should provide you with a confirmation receipt. You can monitor the progress of your application on the USCIS website using the receipt number provided.
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We recommend you check out official web resources to get more information about immigration and work permits and always stay updated about the changes in the immigration laws.
