🧮 Free Contractor vs W-2 Tool
Take-Home Pay
Calculator
Contractor (1099) vs Full-Time (W-2): See your real take-home pay after taxes, benefits, and hidden costs.
$
$30K $500K
Full-Time Benefits (W-2)
Employer Health Insurance
Avg employer contribution: $10K/year
401(k) Match
4% employer match (typical)
Paid Time Off
15 days PTO (~6% salary value)
Contractor Expenses (1099)
$
Solo ACA plan: $400-$800/mo
Full-Time (W-2)
Employee
$0
Annual Take-Home
$0/hr
Effective Hourly Rate
Contractor (1099)
Independent
$0
Annual Take-Home
$0/hr
Effective Hourly Rate
W-2 wins by $X/year
Detailed Breakdown
| Category | W-2 | 1099 |
|---|
Visual Comparison
W-2
1099
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Talk to Our RecruitersEstimates based on 2025 federal tax brackets. State taxes are approximate. Consult a tax professional for personalized advice.
W-2 vs 1099: Key Differences
Understanding the real cost of each employment type.
Full-Time (W-2)
- Employer pays 7.65% of your FICA taxes
- Health insurance (employer typically pays $10K+/year)
- 401(k) match (free money up to 4-6%)
- Paid time off, holidays, sick days
- Limited tax deductions
- Less flexibility in schedule/work
Contractor (1099)
- Higher gross rate (typically 15-30% more)
- Business expense deductions (home office, equipment)
- SEP-IRA allows up to 25% retirement savings
- More flexibility and control
- Pay full 15.3% self-employment tax
- Must pay for own health insurance