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1099 vs W-2 Calculator
Compare a W-2 employee offer against an equivalent 1099 contractor / freelance role apples-to-apples, including SE tax, own health insurance, and unbillable hours.
FINANCECompare a W-2 employee offer against an equivalent 1099 contractor role apples-to-apples. Accounts for self-employment tax, health insurance you must buy yourself, retirement contributions, and unbillable hours.
Common rule of thumb: a 1099 rate should be 25-40% higher than equivalent W-2 hourly to break even after SE tax, benefits, and unbillable time. Full-time billable is at most ~1,800 hrs/yr for solo freelancers (rest is sales, admin, PTO). 1099 trade-offs: higher gross, no employer match, must self-fund retirement and health insurance, quarterly tax cash-flow friction.
Disclaimer: Federal income tax brackets are the same for both — this comparison focuses on FICA, benefits, and expenses.
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Frequently Asked Questions
What is the 1099 vs W-2 Calculator for?
Compare a W-2 employee offer against an equivalent 1099 contractor role apples-to-apples. Accounts for self-employment tax, health insurance you must buy yourself, retirement contributions, and unbillable hours.
How do I use the 1099 vs W-2 Calculator?
Common rule of thumb: a 1099 rate should be 25-40% higher than equivalent W-2 hourly to break even after SE tax, benefits, and unbillable time. Full-time billable is at most ~1,800 hrs/yr for solo freelancers (rest is sales, admin, PTO). 1099 trade-offs: higher gross, no employer match, must self-fund retirement and health insurance, quarterly tax cash-flow friction.
How accurate are my 1099 vs w-2 results?
Federal income tax brackets are the same for both — this comparison focuses on FICA, benefits, and expenses.
Is the 1099 vs W-2 Calculator free to use?
Yes - every calculator on WhichCalc is completely free with no signup, no usage limits, and no tracking on the calculation itself. Results display instantly in your browser and your inputs are never sent to a server. Bookmark the page if you use this calculator regularly.
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