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    W-2 vs 1099 Comparison

    Compare a W-2 salary with benefits against a 1099 independent contractor rate. See the real take-home difference.

    Estimates only. Tax math is simplified for comparison only (flat marginal estimates). Real numbers depend on your bracket, deductions, state, and filing status. Confirm with a CPA before negotiating or accepting.

    W-2 Employee

    Gross Salary$120,000
    Federal Tax (~22%)-$26,400
    State Tax (~5%)-$6,000
    FICA (7.65%)-$9,180
    Est. Take-Home$78,420
    Total Comp (incl. benefits)$139,723

    1099 Contractor

    Gross Income$192,000
    Self-Employment Tax (15.3%)-$27,129
    Federal Tax (~22%)-$34,592
    State Tax (~5%)-$7,862
    Total Expenses-$21,200
    Est. Take-Home$101,218

    Estimated Take-Home Advantage

    1099 wins by $22,798/year

    These are simplified estimates using flat tax rates. Your actual taxes depend on filing status, deductions, state taxes, and other factors. Consult a CPA for accurate projections.

    Important Considerations

    • Tail Coverage: If your malpractice is claims-made, leaving a 1099 position may require $10k–$30k in tail coverage.
    • Benefits Value: W-2 benefits (health insurance, retirement match, PTO, disability) add 25–40% to base salary.
    • State Restrictions: Some states (e.g., Wisconsin) prohibit PAs from being self-employed 1099 contractors.
    • Tax Deductions: 1099 contractors can deduct business expenses (home office, vehicle, equipment, CME).
    • QBI Deduction: Eligible 1099 clinicians may qualify for the 20% Qualified Business Income deduction.