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1099 is the way to go. Every pro does that. No reduced rate unless they COMMIT to a certain amount of time/week/months (with a cancellation fee).
Also W2 will allow you unemployment benefits at the end of the contract
1099 is what you think it is. If you’re set up for it, it can work well for you. But some gigs will prefer to set you up on a W2 through a third party payroll manager or talent agency (Creative Circle is an example). It’s effectively the same thing, but you get taxes taken out for you.
You can set your daily and weekly rate the same as your hourly rate, but the advantage in offering a discount is the same as buying in bulk at Costco: the customer buys more at one time. If you charge $100/hr, that’d be $4000 for a week. If you charge $3500, the client sees a bargain and books you. Yes, you’re making $500’less that week, but now you’re booked for the week.
I see what you mean. Thanks for all the info!
As others have said, 1099 you don’t get any taxes taken out. This has its advantages and disadvantages. It’s good because you can write off many expenses as deductions when you file. But you have to figure out your taxes and set that money aside to pay later, because if you don’t, you’re gonna be in a whole lot of trouble at tax time. If you’re not disciplined enough to do this, I suggest you don’t.
W2 is basically being a temp employee. You’ll get taxes taken out. Depending on the agency, and how long the gig is, you may get a laptop with their software and networking garbage to be able to work within the org. Or at least an agency email address.
At tax time you won’t be able to claim expenses as deductions, but you don’t have to set any money aside because it’s already getting deducted (just like when you’re a FT employee).
Nowadays most agencies won’t give you a choice of how you want to do it. They have their own process that they’re familiar with and so, if you want to get work, just roll with whatever they want to do. Holding companies will almost never do 1099 anymore. At least in my experience. You can still do1099 with indies or very short projects. The reason for this is mostly legal shit that I won’t go into here.
The “discount “ thing is weird, ‘cause I‘be never had anyone outright ask me like that. But in general, most freelancers tend to be a lot more flexible on their rate if someone is willing to hire them for 6 months than if someone wants to hire them for a day or a week. It’s a cost-benefit analysis that everyone calculates on their own to whatever works for them.
1. Set aside 30% of every check
2. Keep your books on QBO or equivalent
3. Hire an accountant
1099 is the way. You’re a small business and should act like one, which comes with more work but the tax efficiencies are very much worth it. Set up as an s-corp or llc, an accountant can help you. You’ll get brutalized on taxes with W2.
Everything’s a dice roll I guess?