Does the 1099 job really pay more?
A bigger hourly rate can hide extra taxes, no benefits, and unpaid time off. Answer a few questions to see what each job is actually worth to you. It's free, takes about two minutes, and you don't need to sign up.
New to W-2 and 1099? Read this first
W-2 means employee
Your employer takes taxes out of each paycheck and pays half of your Social Security and Medicare tax. You may also get health insurance, a retirement match, and paid time off.
1099 means contractor
You're paid the full amount, but you pay your own taxes and costs, and you usually get no benefits or paid time off.
Whether a job can legally be 1099 depends on how the work is actually done, such as who controls your schedule and methods. A contract that says "1099" doesn't settle it.
What are you comparing?
Your W-2 job
The employee job you have now, or the one you're thinking about taking.
Use the number on your offer letter or pay stub, before anything is taken out. Include overtime or bonuses you expect, but not benefits.
Three 12-hour shifts is 36.
Count paid vacation. Use 52 if you're paid all year.
The 1099 job
The contract offer you're considering.
The rate you were offered, before taxes or costs.
If your schedule changes, use an average. Count only shifts and hours you'll be paid for, and leave out months you won't work.
Things like malpractice insurance and license fees. Leave this blank if you aren't sure, but know that we'll count it as $0.
Help me add these up
If the policy is "claims-made," ask about "tail" coverage, which protects you from claims filed after the contract ends. Find out who pays for it.
Tax preparation, supplies or equipment, and travel or lodging that isn't reimbursed.
Not sure what to ask? The free checklist covers costs people forget.
Taxes are handled for you. We estimate Social Security and Medicare tax automatically. As a contractor you pay both halves (an employee pays one). Income tax isn't included.
Also remember, 1099 jobs usually don't include paid time off, unemployment insurance, workers' compensation, or overtime pay.
Advanced options
Only use this if a tax professional gave you a number. It replaces our Social Security and Medicare estimate for the 1099 work.
We add this to the rate that matches your W-2 job to cover unpaid time and surprises.
Before you say yes to a 1099 offer
Get the free two-page checklist: 10 questions to ask about pay, costs people overlook, malpractice coverage, and the contract. Print it, or keep it on your phone.
No email needed.
- Pay: what counts as paid time
- Costs: what you'll pay out of pocket
- Malpractice: coverage type and tail coverage
- Contract: worker status, notice, and limits
Your first 1099 offer, in plain English
The 30-page 1099 Healthcare Starter Kit from Scrubs & Fine Print helps you understand the responsibilities behind the rate, so you can say yes or no with confidence.
- Worked examples for job changes and side gigs
- Questions to ask about taxes, benefits, and your contract
- Fillable worksheets to check your hours and pay
- A first-month checklist to help you get started
A digital PDF. See current pricing and buy on Payhip.
Common questions
What's the difference between W-2 and 1099?
With a W-2 job you're an employee. Your employer withholds taxes, pays half of your Social Security and Medicare tax, and may offer benefits and paid time off.
With a 1099 job you're an independent contractor. You get the full payment, but you cover your own taxes, insurance, and work costs, and usually have no paid time off.
The law looks at how the work is really done, not at the label. Who sets your schedule, directs your work, and supplies the tools all matter. A lawyer can review your situation.
Is this my take-home pay?
No. These numbers are before federal, state, and local income tax, and before paycheck deductions like health premiums or retirement contributions. We only take out Social Security and Medicare tax, because that's the tax that changes most when you move from W-2 to 1099.
How do you figure out the Social Security and Medicare tax?
An employee pays 7.65% of their pay: 6.2% for Social Security (up to a yearly limit) and 1.45% for Medicare. The employer pays another 7.65%.
A contractor pays both halves, 15.3%, on 92.35% of what's left after costs. That works out to about 14.1% of profit. Social Security stops at the yearly limit, which is $184,500 for 2026. Your W-2 pay counts toward that limit too, so a side gig on top of a high W-2 salary may be taxed at a lower rate.
We don't include the extra 0.9% Medicare tax that applies at higher incomes. A tax professional can tell you whether it applies to you.
Why doesn't a higher 1099 rate always mean more money?
The rate has to cover things your employer pays for now: half of your payroll tax, health insurance, retirement money, and paid time off. It also has to cover costs like malpractice insurance and licenses, plus any months you aren't working.
What if I don't know what my benefits are worth?
Choose "I'm not sure yet." We'll leave benefits out and remind you that the result may favor the 1099 job. Employer-paid health insurance is often worth thousands of dollars a year, so ask HR for the number before you decide.
What about unpaid charting, travel, or waiting between shifts?
Enter only the hours you'll be paid for. To see the effect of unpaid time, divide the yearly result by all of the hours you'd actually spend working.
Can 1099 work lower my taxes?
Sometimes. Business costs can reduce your taxable 1099 income, and self-employed people can use retirement accounts such as a SEP-IRA or Solo 401(k). A 20% deduction for qualified business income may also apply, although it can shrink or disappear at higher incomes for healthcare professionals.
On the other side, you pay both halves of Social Security and Medicare tax, and no one withholds tax for you, so you may need to make quarterly estimated payments. A CPA can tell you what applies to you.
What's in the 1099 Healthcare Starter Kit?
It's a 30-page digital PDF for healthcare workers thinking about 1099 work. It includes worked examples for job changes and side gigs, questions to ask about taxes, benefits, and your contract, fillable worksheets to check your hours and pay, and a first-month checklist. It's educational and doesn't replace advice from a tax professional or lawyer. See the details.
Is my information saved or sent anywhere?
No. The math happens in your browser, and what you type isn't sent to us. Downloads are created on your device. We use a privacy-focused visit counter that counts visits and a few button clicks and never sees what you type. If you buy something, checkout happens on Payhip. The website host may keep standard visit records, such as IP addresses. Read the privacy notice for details.
Good to know
For learning only
This site explains how job pay works. It isn't tax, legal, accounting, or financial advice, and using it doesn't make us your adviser.
Your real numbers may differ
Results depend on what you enter, and on tax rules that change and vary by place. We can't promise any particular result.
We can't read your contract
This tool can't tell you whether a job can legally be 1099, what you can deduct, or whether your insurance protects you.
Ask a professional
Before you sign or make tax decisions, talk with a CPA and a lawyer who knows the rules where you work.