W2 Employee vs 1099 Contractor
Compare your take-home pay as a W2 employee vs 1099 contractor
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Enter the same amount for both scenarios to compare
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Frequently Asked Questions
Why do 1099 contractors pay more in taxes?
1099 contractors pay both the employer and employee portions of Social Security and Medicare taxes (15.3% vs 7.65%). This is called self-employment tax.
What rate should I charge as a 1099 contractor?
To match W2 take-home pay, most contractors need to charge 25-40% more than an equivalent W2 salary. This covers the extra taxes and lack of benefits.
Does this include benefits?
No. This calculator only compares taxes. W2 employees often receive health insurance, 401(k) matching, and other benefits worth 20-30% of salary.
This calculator provides estimates for informational purposes only. Consult a qualified tax professional for personalized advice.