W-2 vs 1099 employer cost calculator
Compare employee and contractor cost, then review a lightweight classification risk signal. Guidance only, not legal or tax advice.
Editable assumptions
Regulatory defaults are editable and shown with as-of dates and source links. This tool is guidance, not legal or tax advice.
Role economics
Contractor assumptions
W-2 assumptions
Tooling and hiring overhead
Employer payroll tax rate: 7.65% as of 2026-01-01. IRS employer FICA overview
State unemployment placeholder: 2.7% as of 2026-01-01. State unemployment agency guidance
Workers’ comp placeholder: 1.8% as of 2026-01-01. Workers compensation carrier guidance
Run the scenario after you set salary, contractor, and assumption inputs.
Classification risk checklist
Answer the questions below for a planning signal. This is guidance, not legal advice.