Is a 1099 contractor job worth it compared to a W2 salary?
Switching from a salary to a 1099 contractor role can result in lower net take-home pay because of higher self-employment taxes and lost benefits, even if the headline pay looks higher. This hidden shift makes it difficult to tell if a nominally higher offer will actually leave you better off financially.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Asking the employer for higher payDid this help you?
- 2Calculating a rough benefits package annual numberDid this help you?
- 3Setting aside a percentage of income for taxesDid this help you?
- 4Declining the positionDid this help you?
- 5Evaluating tax write-offs versus W2 savingsDid this help you?
- 6Weighing long-term corporate security against personal relationships with current employersDid this help you?
- 7Considering picking up weekend side workDid this help you?
- 8Asking the school district's HR department for details on pay and benefitsDid this help you?
- 9Looking up the district's paraprofessional or public employee payscale charts online since public salaries are a matter of public recordDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“My main question is if this would result in me making less than staying at my W2 job making 63k. Is a position that pays 72k as 1099 worth it?”source ↗
“I live in New Jersey so my concern is that my taxes will be higher as a 1099 contractor.”source ↗
“I'm mainly concerned that the 9k extra is make with this new opportunity will all go to taxes or even worse that I'll end up making less.”source ↗
Where this came up
People with this problem also raised
- 14Should I take a very low-paying entry-level job out of desperation?
- 5Is a long commute worth it for a stable job?
- 8Is a massive pay cut for startup equity worth it?
- 3Is this job offer a wise move for my long-term goals?
- 113How do I know if a contractor quote is fair?
- 2Should I take a lateral job offer?