At the same gross pay, who takes home more — W-2 or 1099?

At identical gross income, W-2 employees typically net more because the employer pays half of FICA. A contractor earning $100K gross owes $14,130 in SE tax; a W-2 employee at $100K only pays $7,065 (employer pays the other half).

What is the contractor premium to break even with a W-2 offer?

Typically 25–35% more gross income as a contractor to equal a W-2 salary when accounting for SE tax, health insurance, no employer retirement match, and no paid time off.

How does the QBI deduction affect the comparison?

Contractors can deduct 20% of qualified business income (subject to income limits), partially offsetting the SE tax disadvantage. This makes the break-even multiplier closer to 20–25%.

1099 vs W-2 Take-Home Pay Comparator

Compare net take-home pay for a W-2 employee vs 1099 contractor at the same gross income. Accounts for self-employment tax, business deductions, employer benefit value, and QBI deduction.

Principal ($)

Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Compare net take-home pay for a W-2 employee vs 1099 contractor at the same gross income. Accounts for self-employment tax, business deductions, employer benefit value, and QBI deduction. Use the 1099 vs w-2 result to inform your calculation.

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Frequently Asked Questions

At the same gross pay, who takes home more — W-2 or 1099?

What is the contractor premium to break even with a W-2 offer?

How does the QBI deduction affect the comparison?