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$35 an hour isn’t always more than $27.

Compare the employee offer against the contractor offer — self-employment tax, benefits, and business expenses all priced in.

The W-2 offer

01 / EMPLOYEE
$
hrs
$

The 1099 offer

02 / CONTRACTOR
$
hrs
$
%

Contractors pay both halves of Social Security and Medicare (15.3% on 92.35% of profit) \u2014 and get no paid leave. Price all of it.

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$35 an hour isn\u2019t always more than $27.

Compare the employee offer against the contractor offer \u2014 all costs included.

Last reviewed: October 2026.

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Honed Money provides calculators and educational information for general purposes only. It is not financial, tax, legal, investment, or insurance advice. Estimates are based on the information you enter and the assumptions shown. Actual results will vary. For taxes, retirement, and government benefits, verify with IRS.gov, SSA.gov, or VA.gov. We don’t sell financial products and aren’t paid for calculator results. Use at your own risk.