Planning calculator · Assumptions reviewed July 12, 2026
1099 vs W-2 Calculator
Compare two compensation packages using more than headline pay. Benefits, business costs, unpaid time, insurance, retirement match, and payroll-tax treatment can materially change the result.
Estimated result
Calculation breakdown
Amounts are rounded to the nearest dollar for planning. They are not a tax return or payment instruction.
Understand your estimate
What these numbers mean
Use this result as a planning checkpoint, then verify the inputs and official rules that apply to you.
What these numbers mean
The comparison shows estimated contractor value, employee package value, the annual difference, and a contractor break-even amount.
How they were calculated
Contractor compensation is reduced by entered costs, SE tax, and planning rates; employee value adds entered benefits and subtracts the editable payroll-tax assumption and planning rates.
Common mistakes
Do not omit unpaid time or benefits, compare revenue with salary before costs, or use this financial result to decide legal worker classification.
Important assumptions
Benefits are valued at the amounts entered, both sides use simplified income-tax percentages, and the break-even model depends on the entered cost structure.
Why an actual return may differ
Actual results may differ because of benefit eligibility, employer contributions, deductions, classification law, wage-base rules, and marginal tax brackets.
How this estimate works
The 1099 side subtracts business expenses, health-insurance difference, and a payroll-tax difference. The W-2 side adds employer benefits, paid time off, and retirement match to salary. Income taxes are excluded because they require shared household assumptions.
Assumptions
- If no payroll difference is entered, the tool estimates 1099 SE tax minus employee FICA on W-2 salary with annually reviewed constants.
- All benefit values are user estimates.
Limitations
Classification is governed by facts and law, not preference or this comparison. This model excludes unemployment protection, workers’ compensation, risk, equipment, tax deductions, vesting, and many noncash differences.
Frequently asked questions
Are these results tax advice?
No. They are simplified educational estimates. Use current official guidance or a qualified professional for decisions.
Are my entries sent anywhere?
No. Calculations run locally in your browser and this site does not submit calculator entries to a server.
Why are results rounded?
Whole-dollar display avoids suggesting precision that a simplified estimate cannot support.
Related calculators
Self-employment tax
Estimate Social Security and Medicare tax.
Open calculator →Quarterly tax
Plan four federal payment amounts.
Open calculator →1099 take-home pay
See estimated income after key costs.
Open calculator →1099 vs W-2
Compare compensation more completely.
Open calculator →Mileage deduction
Compare mileage and actual expense methods.
Open calculator →Home office
Compare simplified and actual methods.
Open calculator →Learn and prepare
Records and explanations for this estimate
Use these guides to improve inputs and review important limitations.
Educational guides
Profession guides
Expense guides
Planning scope
Results and examples are planning estimates and hypothetical illustrations. 1099TaxCalcs.com does not prepare or file tax returns and does not replace IRS, SSA, state, or local instructions. Tax rules can change, state and local taxes or specialized rules may be excluded, and eligibility depends on individual facts. Verify current official sources and consider a qualified professional when the decision is material or complex.
Tax disclaimer
This tool provides a simplified informational estimate, not tax, legal, accounting, or financial advice. Tax rules and individual circumstances vary. Verify current rules with official IRS guidance and consult a qualified tax professional.