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SmartPayCheck
Career & Freelance • Updated 2026-08-29

W-2 Employee vs 1099 Contractor: Key Payroll Tax Differences

Choosing between a W-2 salary and a 1099 contractor rate requires looking beyond the hourly number. Contractors must cover employer-side payroll taxes that standard employees never see on their stubs.

SmartPayCheck Financial Content Team · Tax laws change annually; calculations are based on standard 2026 IRS schedules.