1099 vs W-2 Comparison Calculator
Compare the take-home pay and total tax burden of being an independent contractor (1099) versus a W-2 employee.
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A 1099 contractor pays roughly 7.65% more in self-employment tax (the employer half of FICA) but gains access to business expense deductions and the 20% Qualified Business Income (QBI) deduction. W-2 employees get employer-paid benefits (health insurance, 401k match, paid time off) worth $5,000-$15,000+. A common rule of thumb: a 1099 rate should be 25-40% higher than a W-2 salary to break even after taxes and lost benefits.