1099 Contractor vs W2 Employee Calculator

Convert hourly rates or salaries between 1099 independent contractor status and traditional W2 employee roles accounting for SE tax, health insurance, PTO, and 401(k) benefits.

1099 Contractor Position

Self-employed / Independent contractor

$
$
$
W2 Employee Position

Traditional full-time employee with benefits

$
$
Equivalent W2 Salary Needed
$98,450 / yr
A 1099 rate of $65.00/hr is equivalent to a W2 employee salary of $47.33/hr + Benefits

Side-by-Side Breakdown

Financial Factor 1099 Contractor W2 Employee
Gross Earnings (2,080 hrs) $135,200 $98,450
FICA / SE Tax Rate 15.3% (Pays Full Employer + Employee) 7.65% (Employer pays 7.65%)
Health Insurance Cost -$5,400 out of pocket Employer Subsidized
Unpaid Days / PTO Adjustment -$7,800 unpaid time Paid Time Off Included
401(k) Employer Match $0 (Must open Solo 401k) $3,938 match value
Estimated Net Annual Value $105,400 $105,400