Full-time vs. part-time vs. contractor

Headline rate is the driver — everything else is computed from it. Full-time pay stays pinned to the nominal (rate × 2080) salary regardless of hours worked; part-time and contractor pay scale with actual hours.

Assumptions

Employee FICA

Employer payroll tax

SE tax

SE tax base

Standard deduction

Marginal tax rate

QBI rate

Business expenses

Bonus (FT)

401(k) match (FT)

Health insurance (FT)

Full-time hours paid / wk

Compare contractor against:

Full-time Part-time

Full-time

Headline rate Hours worked / wk

Part-time

Headline rate Hours worked / wk

Contractor

Headline rate

Hours mirror the selected column.

Full-timePart-timeContractor

Summary

Employer saves by hiring the contractor

–

Your true take-home gap

–

Break-even

Hours/wk needed at your current rate

–

Rate needed at your current hours

–