Illinois 1099 vs. W-2 Calculator
Illinois has a flat 4.95% state income tax. Combined with federal payroll and self-employment tax rules, that determines how much more a 1099 contractor needs to earn to match a W-2 employee's take-home pay in Illinois.
As a W-2 employee
Take-home rate 78%
Take-home $58,677 Tax $16,323
Gross pay $75,000
FICA payroll tax (7.65%) $5,738
Federal income tax $7,670
Illinois income tax $2,916
Take-home pay $58,677
As a 1099 contractor
Take-home rate 76%
Take-home $56,852 Tax $18,148
Gross pay (net profit) $75,000
Self-employment tax (15.3%) $10,597
Federal income tax $4,898
Illinois income tax $2,653
Take-home pay $56,852
At the same gross pay, a W-2 employee takes home
$1,825 more than a 1099 contractor
This is because contractors pay the full 15.3% self-employment tax, while W-2 employees split the 7.65% FICA tax with their employer. Contractors typically need to charge more per hour to make up the difference.