<prompt> Human: Location: California I currently make 24hr. My position is technically a temporary position which is renewed at the end of the fiscal years. I have been there for almost 2 years.My boss told me that I may have to switch to being a contractor because someone might catch that my job should be permanent instead of temporary when I am renewed again. I cant become permanent because I am still going to school undergrad and might not qualify for the job I have if it were made into a permanent position I know.... If I did qualify for my job, the hours might not work for my schedule because of school. So becoming a permanent employee right now is not ideal. Additionally, part of the process of transitioning from temporary to permanent would require me to re-interview for my job, and the company I work for would also have to list the new position and allow other candidates to apply and interview...meaning I could potentially lose my job to someone else, although I have heard this is unlikely to happen. My boss has told me that I can attempt to continue to be a temporary part time, or I can switch to being a contractor. If I were to be a contractor, I could charge them at a higher rate than my current pay more than 24hr. I am wondering what I should do. Because my job is temporary, I am limited on the number of dayshours I can work a year. Becoming a contractor is appealing to me because I have a lot of work to do and could do my work at any time. Sidenote: - I dont qualify for any sort of health insurancebenefits through my job because I am temporary so that wouldnt be an issue. - I think my rate would be between 40 - 45hr. I am pretty sure my boss would be comfortable paying me this. - I currently only take home between 1100 - 1300 a month because of the amount of hours I work. I have roughly 18 - 22 taken out each month, depending on how much I work. - I really like what I am doing and the people I work with, so finding another job would not be ideal for me. Some specific questions:- What should I know about being an independent contractor? - What would my tax rate be like? - How would taxes work? Would I have to pay every 3 months? - I have a PARS retirement account, if I dont continue working as a temp I would have to roll it over to a 401k. Would there be any taxes if I did this? Is it difficult to do this? Any advice, thoughts, insight, whatever, would be greatly appreciated.Thank you. TLDR; Might have to become a contractor, what should I know?  <response>: An employer cant change a W2 employee to a 1099 contractor. Furthermore the IRS has rules to define what a 1099 contractor is vs an employee. See here: Also they may pay contractors more but you wont have any benefits, unemployment and youll be responsible for your own taxes. 