Employee vs Independent Contractor: Which Pays More

A $80,000 W2 salary nets about $64,700 after federal, state, and employee FICA, while $90,000 as a 1099 contractor nets about $59,400 after self-employment tax, federal, state, and a 10% expense ratio. To match the W2 take-home, the contractor needs roughly $98,500 of 1099 income. The gap comes from paying both halves of FICA as SE tax (15.3%) and losing employer benefits. The tool models both side by side so you can price a contract correctly.