Disclaimer: This calculator is an AI-assisted tax modeling simulation for informational purposes only. Consult a certified CPA for personalized filing advice.

W-2 vs. 1099 vs. Corp-to-Corp (C2C) Calculator

Compare net take-home pay, total tax liability, business write-offs, and equivalent billing rates across employment structures.

Compensation & Filing

Deductions & Expenses (1099 & C2C)

Annual Business Expenses (Hardware, Home Office, Travel) $12,000
Solo 401(k) / SEP-IRA Contribution $20,000
W-2 Salary: 60% Distribution: 40%

S-Corp distributions avoid 15.3% Self-Employment FICA tax.

W-2 Employee

Standard

Employer pays 7.65% FICA; standard deduction applied.

Net Take-Home

$0

Effective Tax:0%
Total Taxes:$0

1099 Contractor

QBI + SE Tax

15.3% SE tax, QBI 20% deduction, business write-offs.

Net Take-Home

$0

Effective Tax:0%
Total Taxes:$0

Corp-to-Corp (S-Corp)

Optimal

Salary + Distributions split to minimize FICA.

Net Take-Home

$0

Effective Tax:0%
Total Taxes:$0

Equivalent Hourly Rate Needed to Match W-2 Net Take-Home

Target W-2

$100.00/hr

Needed on 1099

$0.00/hr

Needed on C2C

$0.00/hr

Financial Distribution Comparison