There is a movement afoot in the interpreting profession to change the classification of interpreters from the traditional independent contractor to employee. This change is going to have a huge effect on interpreters and companies alike.

Firstly, some terms...

Employee classification is the umbrella term for the decision of whether a worker is an employee or independent contractor.

1099 is the name of the IRS form an agency sends to an independent contractor and the IRS for tax purposes every year. "1099" is a shorthand way of saying you are your own business and not an employee. Freelancer is another synonym. All three terms are used interchangeably.

W-2 is the name of the form an agency sends to its employees and the IRS every spring for tax purposes. W-2 has become shorthand for employee.

With that baseline, here are the things you, an interpreter, should keep in mind as an agency makes a switch.

1) You may choose to continue as a 1099.

There are advantages to staying 1099 and most agencies will permit you to stay 1099 if you do the following:

A) Form an LLC in your state

B) Get an EIN from the IRS

C) Acquire liability insurance

2) Your hourly rate may decrease.

Agencies take on additional costs with a W-2 employee than a 1099. Some agencies will do a 'flat conversion' where the rate stays the same, some will require up to a 20% decrease as they calculate an 8% increase in tax liability plus additional benefits and costs, while others will split the difference and propose a 5% or 10% decrease.

3) Your take home pay will be less. Maybe a lot less.

Even if you get a flat conversion, your take home pay will be considerably less. Employers are required to withhold Federal and state taxes from each paycheck. These are taxes you would pay as a 1099 but the employer withholds them and pays the IRS directly. This amount is at least 8% but more likely 30%.

If you normally expect $3,500 every two weeks, you may now be getting $2,500.

4) There will be a lot of paperwork.

One of the reasons government agencies require W-2 classification is to ensure the company is conducting the relationship in the authorized rules. Those rules are verified using paperwork.

You'll have to sign new forms, employer agreements, and check a lot of boxes as you are on-boarded.

5) You may be eligible for some benefits...But you may not.

Companies set their own policies on what categories of employees are eligible for benefits for health insurance, retirement, and paid time off.

This change in the industry is upon us and, as individuals, it's our responsibility to learn as much as we can to navigate it to our advantage. Good luck.