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Full Time vs Contract roles, Understanding the Difference

Updated: Aug 9, 2024



Navigating the job market as an international student can be challenging, especially when trying to understand the different types of employment roles available. Here, we explain the differences between full-time, contract, and W-2 roles, and highlight the rules you must comply with as an international student in the U.S.

Full-Time Employment

Full-time employment typically refers to permanent positions where you work a set number of hours per week, usually around 40 hours. These roles often come with benefits such as health insurance, retirement plans, paid time off, and job stability. Employers may also offer opportunities for career advancement and professional development. As an international student, securing full-time employment on OPT (Optional Practical Training) or STEM OPT extension can provide valuable work experience and potentially lead to H-1B visa sponsorship.

Contract Employment

Contract employment involves working on a temporary basis for a specified period, often for the duration of a particular project. Contractors are usually hired through staffing agencies or directly by companies. They may work full-time hours, but their employment is not permanent, and they typically do not receive the same benefits as full-time employees. Contractors are often paid hourly or per project. For international students, contract roles can be a good way to gain diverse experience and build a professional network, but it is essential to ensure that the job relates to your field of study and complies with your visa requirements.

W-2 Contract Roles

A W2 contract job is a special kind of employment when a worker uses a temporary staffing agency to operate as a contractor for a client. The agency provides the person with a Form W-2 that details their wages, deductions, and taxes for the year. Instead of being an independent contractor who would get a Form 1099, the contractor in this arrangement is considered an employee of the temporary employment agency. This distinction is crucial because independent contractors could not be eligible for the benefits and protections that W2 contractors are entitled to, like access to unemployment benefits and tax withholding. People can choose the kind of work that best fits their requirements and preferences by being aware of the subtleties of a W2 contract position.

Rules to Comply with as an International Student

As an international student working in the U.S., it is crucial to comply with several rules to maintain your legal status:

  1. Job Relevance: The job must be directly related to your field of study. You should be able to explain how your employment aligns with your academic background.

  2. Reporting Employment: Report your employment details to your Designated School Official (DSO) within 10 days of starting a new job or changing employers. This includes providing the employer's name, address, job title, and how the job relates to your major. More about reporting your details to DSO here

  3. Maintain Full-Time Status: During OPT, you must work at least 20 hours per week. For the STEM OPT extension, you must be employed full-time.

  4. Unemployment Limits: You are allowed a maximum of 90 days of unemployment during your initial OPT period and an additional 60 days during the STEM OPT extension. you can read more about this here.

  5. Tax Compliance: File your taxes accurately, and ensure you receive a W-2 form from your employer if applicable. International students are subject to U.S. tax laws and must comply with filing requirements.


Understanding these employment types and complying with the relevant regulations is essential for maintaining your visa status and making the most of your professional opportunities in the U.S. By staying informed and proactive, you can successfully navigate the job market and build a rewarding career.

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