Freelancer Tax Tool 2024
1099 vs W2
Tax Calculator
Compare self-employed contractor vs employee take-home pay after all taxes and deductions.
🧾 1099 Contractor vs W2 Employee
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🟡 1099 Contractor
Gross Revenue$0
Business Expenses-$0
Self-Employment Tax (15.3%)-$0
Federal Income Tax-$0
State Tax-$0
Net Take-Home$0
🔵 W2 Employee
Gross Salary$0
Benefits Value+$0
FICA (Employee half 7.65%)-$0
Federal Income Tax-$0
State Tax-$0
Net Take-Home + Benefits$0
1099 vs W2: What's the Difference?
When you work as a 1099 independent contractor, you're responsible for paying both the employee and employer portions of Social Security and Medicare taxes — a total of 15.3% in self-employment tax. This is compared to W2 employees who only pay the employee's 7.65% share (the employer covers the other half). This 1099 vs W2 calculator helps you see the real after-tax difference.
⚠ Key Fact: A $100,000 1099 contract is NOT equivalent to a $100,000 W2 salary. After self-employment tax, the 1099 earner pays ~$7,600 MORE in taxes.
Key Differences Summary
| Factor | 1099 Contractor | W2 Employee |
|---|---|---|
| FICA / Self-Employment Tax | 15.3% (full amount) | 7.65% (employer pays half) |
| Tax Filing | Quarterly estimated taxes | Withheld automatically |
| Health Insurance | Self-pay (deductible) | Often employer-subsidized |
| Retirement Contributions | SEP-IRA or Solo 401k | Employer 401k match |
| Business Deductions | Home office, equipment, etc. | Very limited |
| Job Security | None (at-will contract) | More stable |
| Flexibility | High | Low |
Break-Even Rule for 1099 vs W2
| W2 Salary | Equivalent 1099 Rate Needed |
|---|---|
| $60,000 | ~$77,000+ (including benefits) |
| $80,000 | ~$103,000+ (including benefits) |
| $100,000 | ~$130,000+ (including benefits) |
| $150,000 | ~$190,000+ (including benefits) |
Search Keywords
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