Gig Work vs W-2 Job Calculator
Gig vs W-2 Comparison
Compare net income between gig and traditional employment
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Formula
Gig Take-Home = Revenue − Expenses − SE Tax − Health Insurance − Income Tax
Frequently Asked Questions
Do gig workers pay more taxes than W-2 employees?
Yes. Gig workers pay 15.3% self-employment tax vs 7.65% employee FICA. On $50,000 net income, that's ~$3,825 extra vs a W-2 worker. However, gig workers can deduct business expenses that W-2 employees cannot, partially offsetting the difference.
What is the gig work premium?
To equal a W-2 salary with benefits, gig workers typically need to earn 30–40% more in gross revenue. A $60,000 salary with $12,000 benefits requires roughly $85,000+ in gig revenue to match after SE taxes, health insurance, and no paid time off.
What hidden costs do W-2 employees have that gig workers don't?
W-2 workers often overlook commuting costs ($2,000–$5,000/yr), professional clothing, and mandatory schedules. Gig workers gain flexibility but lose: paid vacation (worth $3,000–$5,000), employer retirement match, paid sick days, and unemployment insurance eligibility.
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