If you are an IT consultant with any skills, especially in the embedded systems world, you are going to encounter ALKU. They are almost as bad as Zoom Technical. You will find yourself blocking their domains on your email server, not just your email client. You will also find yourself blocking all their phone numbers.
With Zoom they badger you a few days per week trying to find “one skill” for a client that needs half a dozen. They call you for C++ work and cannot tell you what operating system the project is on or what the project is. Neither firm has any real concept of the U.S. tax code. It’s just like talking to an Indian firm one the phone, only difference is they tend to put native English speakers on the phone.
W-2 or C2C
Do you know what C2C is?
It’s C2C.
Legitimate firms work 1099 to an EIN (Employer Identification Number). You need to issue a 1099 at end of year to an EIN stating what you paid them. Bottom feeders don’t. Here’s what happens with C2C when you don’t issue 1099. The entity getting paid doesn’t report the income. The IRS will come looking for both of you.
Twenty Questions
The IRS came up with the twenty questions during the Janet Reno investigation of Microsoft. Bill Gates and crew had tons of people they called “contractors” to avoid paying benefits and Social Security on. They were employees in reality. Bill Gates and crew were paying them on 1099 to a Social Security Number. Some, possibly many of them, didn’t pay their taxes.
The 1099 to a Social Security Number loophole exists for Agricultural workers. Think people who show up to pick fruits and vegetables and leave. They only work a few weeks out of the year for you.
There are dozens of legal business entities which get EINs. Sole Proprietors and Partnerships are two of the biggest. Someone who created an S-Corp and files that schedule with their 1040 doesn’t ensure you any more protection that a Sole Prop or Partnership. You still need to issue a 1099 to cover your ass.
First Sin
Most, if not all, of the bottom feeder firms commit the first sin. They only work W-2 and the recruiter knows they only work W-2, but they string you along saying 1099 or whatever is possible. Belief here is that you will find the perfect contract with them and they can force you into W-2.
Lots of firms get kicked to the curb for this.
Second Sin – Bait and Flush
Indian firms are notorious for this and so are the bottom feeding American firms. Alku actually did this to me. I spoke with the account rep about a project and he said “You are a perfect fit for this. The rate works. I’m going to get you in front of the client in an hour.”
Two days into the following week I reached out to the recruiter. Shocked I actually had them answer the phone. 99% of the time they ghost you. Bigger shock when he actually said “Well that project was very cost sensitive so the account rep submitted a cheaper person.”
What this does is take you out of the candidate pool for no money. Firms that are scum do this. They know you are going to be contacted by every vendor on the list and that you are the most qualified candidate, but they want to get an H1-B in there so they tell you they have presented you. Never a confirmation email. When other firms contact you, because you have been told you are submitted to that very client, you cannot allow them to present you.
A slightly different version of this is bottom feeding firms present the American at an American rate and have an H1-B use an AI generated resume matching the position exactly . . . just for 1/3 of market rate.
Mortal Sin
Alku is notorious for this and so are most Indian firms. An email much like the following will show up daily or weekly.
They auto-spam every email address of every consultant. Never answer the phone, return a phone call, or reply to an email. A few days later you get the same email.
Legitimate companies don’t spam consultants like this. They only reach out when the list of skills needed for a project is a close match. That’s the difference between professional and body slamming.
Summary
Yes, I kicked Alku to the curb today. Unless you enjoy being treated like shit, you should as well.
