Estimate only. Tax rates and benefit costs vary by state and employer.
We build the employee's all-in cost (salary + payroll taxes + benefits + overhead) and compare it to the contractor's rate times annual hours.
Price your team with our free hiring-cost tools.
A contractor’s hourly rate looks expensive next to a salary, but you skip payroll taxes, benefits, PTO and most overhead — and you only pay for hours worked. For part-time, project, or variable needs, a contractor often costs less overall. For full-time, ongoing work, an employee usually wins once you spread their fixed costs across a full year.
Beyond dollars, weigh control, availability, IP ownership and the legal risk of misclassification — the IRS and states care a lot about whether a "contractor" is really an employee. Use this for the money comparison, then factor in the rest.
Often for part-time or project work; employees usually win for full-time ongoing roles.
Payroll taxes, benefits, PTO and most overhead.
The IRS/states penalize treating real employees as contractors — get it right.
No — it's a cost estimate.