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//// Business · Compensation

Contractor Benefits Package Valuer

That $100k W2 salary might really be $130k+ when you count the benefits. Know the full number — and the 1099 rate you'd need to match it.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Position Details

Health & Insurance

Retirement

e.g. “50% match up to 8% of salary” = enter 50 and 8. The effective match rate is 4.0% of salary.

Time Off

Development & Perquisites

True Total Compensation
Base salary
$100,000
+
Benefits value
$25,750
=
Total compensation
$125,750

Benefits represent 25.8% of your base salary. A 1099 contractor needs to charge at least $572/day ($71/hr) to match this package.

Benefits Value
$25,750
Annual
Total Compensation
$125,750
Salary + benefits
1099 Equiv Daily Rate
$572/day
To match this W2 package
1099 Equiv Hourly
$71/hr
At 8 hrs/day

Benefits Breakdown

Independent Cost
Health insurance (employer contribution)
Employer pays $500/mo toward your premium
$6,000/yr
$5,400/yr indep.
Dental insurance
$360/yr
$480/yr indep.
Vision insurance
$120/yr
$216/yr indep.
HSA employer contribution
Employer-funded HSA — tax-free dollars for medical expenses
$750/yr
401k employer match (4.0% of salary)
Free money — 100% immediate return on your contribution up to the cap
$4,000/yr
Life insurance ($200,000 coverage)
Group life insurance — cheaper than buying individually
$1,440/yr
$1,872/yr indep.
Short & long-term disability insurance
Typically covers 60% of salary. Would cost ~$1,800/yr independently.
$1,080/yr
$1,800/yr indep.
PTO (15 days)
Valued at your daily rate of $385/day
$5,769/yr
Paid holidays (11 days)
Days you're paid but not working — a contractor absorbs these as non-billable
$4,231/yr
Professional development budget
$1,500/yr
Home office / equipment stipend
$500/yr
What These Benefits Would Cost You Independently
Group benefits (your cost)
$25,750/yr
Independent market cost
$26,518/yr
Group plan savings
$768/yr

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