1099 Contractor vs. W-2 Employee Salary Calculator

Find your break-even hourly 1099 rate after accounting for the extra 7.65% employer FICA tax, unpaid PTO, health insurance, and the 20% Section 199A QBI deduction.

1099 vs. W-2 Equivalence Engine • National Benchmark

Compare W-2 Salary vs. 1099 Hourly Rate

W-2 Annual Base Salary ($)

1099 Hourly Bill Rate ($/hr)

Billable Weeks/Yr

Employer Benefits Value ($)

Estimated Net Equivalence Difference

+$31,420/yr

To match your W-2 salary + benefits, your break-even 1099 rate is calculated below.

W-2 Employee Total Package

Gross W-2 Salary:$110,000

Employee FICA (7.65%):-$8,415

Health/401k Match Value:+$12,000

Net Adjusted Value:$113,585

1099 Independent Contractor

Gross 1099 Revenue:$163,200

Schedule SE Tax:-$23,060

Sec. 199A QBI Est.:+$6,500

Net Adjusted Value:$146,640

Next Steps to Lock In Your Results

Operating as a 1099 Contractor? Set Up Your Business Entity & Payroll

FTC Disclosure: Partner links below may earn us a commission at $0 extra cost to you, keeping our calculators free & ad-free.

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Track Write-Offs, Mileage & Quarterly Taxes Automatically

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🏛️ Official U.S. Government (.gov) Worker Classification & Tax References:

IRS.gov — 1099 vs. W-2 Rules Official common-law employee vs. contractor criteria ↗ IRS.gov — Section 199A QBI Up to 20% Qualified Business Income pass-through deduction ↗ DOL.gov — FLSA Standards U.S. Department of Labor independent contractor guidelines ↗