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//// Career · Job Offer Analysis

Freelance vs Employee Calculator

Enter a job offer and a freelance alternative. See which one actually puts more money in your pocket — after SE tax, FICA, employer benefits, 401k match, and state taxes.

SE Tax Rate15.3%
QBI Deduction20%
Quarterly DeadlinesApr · Jun · Sep · Jan

Verdict

Employee wins by $1,268/yr

Effective hourly: $34/hr employee vs $39/hr freelance (+$5/hr)

Job Offer

Winner
Net Take-Home
$66,974
Total Comp
$101,100
incl. benefits + match
Effective Tax Rate
25.6%
Effective Hourly
$34/hr
1,960 hrs/yr

Freelance Alternative

Net Take-Home
$65,706
Total Comp
$78,306
net + retirement
Effective Tax Rate
28.3%
Effective Hourly
$39/hr
1,680 hrs/yr

Employee

Freelance

$90,000
Gross Annual
$126,000
$23,026
Tax Burden
$35,694
25.6%
Effective Tax %
28.3%
$66,974
Net Take-Home
$65,706
$101,100
Total Comp Value
$78,306
$34/hr
Effective $/hr
$39/hr

Numbers never leave your browser · Not financial or tax advice

The 1.4× rule — a 1099 rate needs to be at least 40% higher than a W-2 salary to break even after taxes and benefits. So a $100k salary job needs a ~$140k contract rate to net the same.

Common Questions

You're paying both sides of FICA (15.3% vs 7.65% for W-2 employees) plus no employer benefits — no health insurance, no 401(k) match, no paid time off. The calculator accounts for all of this to show true take-home.

Generally 1.4× the W-2 equivalent — so a $100k salary job would need a ~$140k contract rate to net the same after SE tax, self-paid benefits, and the loss of employer contributions.