W-2 EMPLOYEE — EMPLOYER COST
Base salary
FICA (SS 6.2% + Medicare 1.45%)
FUTA unemployment ($7,000 × 0.6%)
Health insurance
401(k) match
PTO cost
Other benefits
Total W-2 employee cost
1099 CONTRACTOR — EMPLOYER COST
Contract rate paid
No FICA, benefits, or PTO$0.00
Total contractor cost
SAVINGS COMPARISON
Cost difference (contractor saves)
W-2 premium over contractor
Contractor equivalent hourly rate
W-2 COSTS MORE BY