What is corp-corp?

Question

What is corp-corp? how is the payments handled? what is the position of the employee?. what is the position of the employer. I need very detailed information on this. Can anyone help on this?.

Answer 1

A Corp to Corp contract is a an arrangement where a corporation that has a job hires another corporation to hire, insure, and take care of the tax and legal responsibilities of hiring an employee to fill this job. For example, ABC Corp. wants to hire a programmer for 6 months but doesn’t want to deal with all the HR issues. So ABC Corp. contracts out the position to XYZ Corp. XYZ corp. finds and hires someone that can fill the requirements. After an interview, if ABC Corp agrees to take on this individual then XYZ Corp. handles all the tax, insurance, and legal paperwork with the programmer.

At the end a work period the programmer willl fax or email a completed timesheet to XYZ Corp.  The manager at ABC Corp. may need to confirm the hours worked and sign the timesheet first.  XYZ Corp. will then invoice ABC Corp. for the work completed by the programmer.  Depending on the contract, ABC Corp. must pay XYZ Corp. within a certain number of days.  This may be 30 days from the date of invoice or more.  Depending on the contract between XYZ Corp. and the programmer, XYZ Corp. must pay the programmer after a certain number of days after the timesheet has been submitted or worse, until XYZ Corp. receives payment from ABC Corp.

Hope this helps you.