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You don’t and say thank you.
If literally all that is happening is they’re paying you via 1099 after paying you via W2, then you don’t change your rate. All that’s changing is the legal status of your relationship with the company.
You will receive ALL of the compensation from now on, they will not take out taxes or anything like that ahead of time. SET ASIDE 30% FOR TAXES.
Trust me. PAY YOUR GOD DAMN TAXES.
This can be a great thing if you stay on top of your taxes. I’m speaking from experience here.
You might also want to explore setting up an LLC or an s-corp, and paying a QTE, but if you’re at least setting aside that 30%, you’ll be able to handle what comes next.
There is no need to change your rate. The difference is in how your income is taxed.
W2: You are considered employed by the company so they will have you on payroll and take taxes out of your paycheck. For instance if your rate is (simplified example!) $100/day, at the end of a 5-day week you get a paycheck for $400 because they already took out 20% for taxes.
W9/1099: You are an independent contractor. This means you will invoice them at the end of the 5-day week* for $500. They will pay you in full, and YOU are responsible for paying income tax on this amount the following year. The following January they will send you a 1099 which is a tax form that says how much money they paid you. This is why people are telling you you must set aside 30%, to be sure you have money to pay income tax later.
You wouldn’t
You don’t and technically you’ll be taking home a bigger paycheck. You should still put aside around 20-30% of it for taxes
If it was the other way around you might be able to raise your rate a bit since when you’re w2 that tax money is pretty much gone. And most freelancers have tax people that can get them bigger tax breaks so prefer 1099