Contractor vs. Employee Tax Comparison Tool

Contractor vs. Employee Tax Comparison

This tool provides a simplified comparison based on *your* inputs. Tax laws are complex and vary.

Enter the total annual income before any taxes or deductions.

Annual Gross Income ($):

Estimate the employee's share of taxes and deductions based on the annual gross income.

Employee Payroll Tax Rate (% of Gross Income):

(e.g., Social Security, Medicare share)

Estimated Annual Income Tax ($):

(Estimate based on your tax bracket after standard/itemized deductions)

(e.g., health insurance premium share, retirement contributions)

Estimate the contractor's taxes and business expenses based on the annual gross income.

Contractor Self-Employment Tax Rate (% of Gross Income):

(e.g., Both employer and employee shares of Social Security/Medicare)

Estimated Annual Business Expenses ($):

(e.g., Home office, supplies, software, travel deductions)

Estimated Annual Income Tax ($):

(Estimate based on your tax bracket *after* business expenses and self-employment tax deduction)

(e.g., self-paid health insurance, specific industry costs)

Enter details in the tabs above and click Calculate.