1099 vs W-2 Tax Calculator 2026 — Contractor vs Employee | DoUrWork
Calculate the 1099 contractor rate equivalent to a W-2 salary, factoring in 15.3% self-employment tax, employer FICA, healthcare, and PTO.
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How to Use the 1099 vs W-2
Enter Base W-2 Salary
Enter comparable employee salary for your role and industry.
Select Benefit Allowances
Include estimated employer healthcare contributions, 401(k) match, and PTO days.
Analyze Equivalent 1099 Rate
Review the break-even 1099 hourly and annual billing requirement to maintain equal take-home pay.
Frequently Asked Questions
What 1099 rate equals a $100k W-2 salary?
To match a $100,000 W-2 salary with benefits, a 1099 contractor generally needs to bill between $130,000 and $145,000 annually (~$65–$75/hour). This compensates for paying both halves of FICA (15.3% self-employment tax), lack of employer-subsidized health insurance, 401(k) match, and unpaid PTO.
What taxes do 1099 contractors pay that W-2 employees do not?
1099 contractors pay the entire 15.3% self-employment tax (12.4% Social Security up to the wage cap plus 2.9% Medicare). W-2 employees only pay half (7.65%), while their employer pays the other 7.65%.