How it works
1099 Freelancer vs W-2 Employee Tax Estimator
Transitioning from a traditional W-2 employee position to a 1099 independent contractor role in the US requires understanding self-employment taxes. While 1099 contractors often command higher hourly rates, they are responsible for both the employer and employee portions of FICA taxes.
This calculator provides an exact side-by-side comparison of 1099 self-employment tax (15.3%) versus W-2 payroll withholding. It factors in business expense write-offs, federal/state tax brackets, PTO/health benefits, and outputs your required 1099 hourly billing rate & IRS quarterly schedule.