Learn the key differences between being a 1099 independent contractor and a W-2 employee, including tax responsibilities, deductions, and how to maximize your income.
1099 workers are independent contractors who receive a 1099 form for the income they earn. They are responsible for paying their own taxes, including federal, state, and self-employment taxes. They often have more flexibility but fewer benefits.
W-2 employees have taxes withheld from each paycheck by their employer, including federal income tax, Social Security, and Medicare. Employers also contribute to Social Security and Medicare on their behalf. Employees may receive benefits like health insurance and paid time off.
Estimate your federal and state taxes based on 1099 income quickly.
Track and calculate deductible expenses for freelancers to lower taxable income.
Calculate Social Security and Medicare taxes for self-employed income accurately.