Compare your take-home pay as a 1099 contractor versus a W-2 employee. See the real difference.
You keep $1,845 more per year as W-2
That's $154/month or $1.01/hour more in your pocket
Employer handles half your payroll taxes
Effective tax rate: 13.4%
You pay all payroll taxes yourself
Effective tax rate: 19.0%
W-2 employees get protections and perks that 1099 contractors have to pay for out of pocket, or go without entirely.
Keep more of what you earn
W-2 staffing apps offer shifts in warehousing, hospitality, and more. You pick your schedule, and keep the tax and benefits advantages of W-2 employment.
Get the AppCaptures gross pay (annual or hourly), state, filing status, and the self-employment business deductions you'd claim. Returns a side-by-side: W-2 net (employer pays half of FICA) vs 1099 net (you pay both halves but can deduct business expenses).
When evaluating a contract offer against a salaried role, when deciding whether to incorporate (LLC, S-corp), or when negotiating a 1099 rate against a peer's W-2.
FICA (Social Security + Medicare) totals 15.3% of net self-employment earnings. As a W-2 employee, your employer pays half (7.65%); as a 1099 contractor, you pay both halves. Half of the SE tax is deductible against federal income tax.
Estimate Only
This calculator provides estimates for educational and planning purposes only. Results are based on general data and may not reflect your specific situation. Tax laws, rates, and regulations change frequently. Always consult a qualified tax professional or financial advisor before making financial decisions.
Last updated: 2025-01-10
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The big ones: home office (% of rent/mortgage by sq ft), business mileage (62¢/mi for 2026), health insurance premiums (self-employed deduction), retirement contributions (SEP-IRA, Solo 401k), business meals (50%), software subscriptions, supplies. The calculator includes the major categories; less common deductions need a tax pro.
Most states tax 1099 income the same as W-2 income via the income-tax engine. A handful (New York, California) have additional rules — Disability Insurance, supplemental rates for high earners. The calculator flags states with quirks.
Beyond the scope of this calculator. The short version: an S-corp can save FICA on income above what you pay yourself as 'reasonable salary', but adds compliance cost ($1,500-3,000/yr in tax prep + state fees). Generally worth it at $80K+ of 1099 net.
Optionally — add an estimate of employer-paid health insurance ($8K-15K/yr typical), retirement match ($3K-6K typical), and other benefits. The 1099 net minus your own equivalent costs gives the real apples-to-apples comparison.
If you go 1099, you owe quarterly estimates to avoid an underpayment penalty. The calculator computes your annual federal + SE tax + state tax and divides by 4 — that's your quarterly estimate. Pay by April 15, June 15, September 15, and January 15.
Decide between options when money is involved.
