Hi,

Am venturing into US/Canada staffing. Can somebody help me with how to start the same.

Current Market : Before anything, it is very important you check what is in the market right now and what is being offered,, services, terms and conditions, warranties ....Who are the players ?


PRICING wot are the usual terms and condition, pricing is percentage based as in India ??? Wot is the standard rate?

Can some explain W2, Corp 2 Corp, 1099 Basis

Thanx

Typically all the 3 are associated with independant contractors.

1099 (is the IT form (US) for declaring contractors' (independant ones) taxes. Like we have Form16 in India.) are direct contractors.

Corp-to-corp is a employment relation from a company to another, typically prevelant in replacement of direct contracting. More often is the fact that people incorporate themselves so that they can save a lot of money in tax (by showing their income as corp expenses, travel expenses etc.)

W2, is subcontracting. Where you work on my payrolls and on my clients' locations. I bill you with the client and pay you salary for the contract duration.


This is just a brief idea on it.

If you say you want to venture into US staffing, you would be incorporating a staffing firm and providing clients a lot of contractors who would be working with you on W2. More typically, in the US, there are agencies called MSPs (manpower service providers) that handle all recruitment activities of one or more companies, with the actual employer having just one or two HR people to host requirements. The MSPs bill on a percentage fee that is offered to potential employees of the staffing firm. And the revenue made by the staffing firm is the difference between what is paid to the contractor and what is billed with the MSP (or the client, I am not sure which one actually bills).

In India, the recruitment process of the staffing firms are outsourced. (Obviously to save paying a recruiter $35 per hour and paying them INR15000/- or so!!)

More info: A year in the US calendar is 2080 working hours, and billing is done on an hourly basis with contractors. Benefits to be paid to the contractor are taken care of by the staffing firm itself.

Thats about it. I am not sure if I can help you further. I would suggest that you get in touch with any of the recruiters or account managers working in US staffing firms to help you further.

PL&E