{
  "calculator": "contractor-vs-employee-calculator",
  "title": "Contractor vs Employee Calculator",
  "site": "AI Biz Hub",
  "input": {},
  "defaults_used": {
    "annual_salary": 85000,
    "contractor_hourly_rate": 70,
    "annual_hours": 2080,
    "social_security_rate": 6.2,
    "social_security_wage_base": 184500,
    "medicare_rate": 1.45,
    "futa_rate": 0.6,
    "suta_rate": 2.7,
    "suta_wage_base": 7000,
    "health_insurance_annual": 7000,
    "retirement_match_rate_percent": 3,
    "workers_comp_rate_percent": 1,
    "training_equipment_annual": 2000
  },
  "result": {
    "annualSalary": 85000,
    "contractorHourlyRate": 70,
    "annualHours": 2080,
    "w2TotalAnnualCost": 104133.5,
    "contractorAnnualCost": 145600,
    "w2HiddenCosts": 19133.5,
    "breakEvenContractorHourlyRate": 50.06,
    "annualCostDelta": 41466.5,
    "monthlyCostDelta": 3455.54,
    "cheaperOption": "w2_employee",
    "breakdown": [
      {
        "label": "Base salary",
        "amount": 85000,
        "category": "Salary"
      },
      {
        "label": "Employer FICA",
        "amount": 6502.5,
        "category": "Taxes"
      },
      {
        "label": "FUTA",
        "amount": 42,
        "category": "Taxes"
      },
      {
        "label": "State unemployment",
        "amount": 189,
        "category": "Taxes"
      },
      {
        "label": "Workers comp",
        "amount": 850,
        "category": "Insurance"
      },
      {
        "label": "Health insurance",
        "amount": 7000,
        "category": "Benefits"
      },
      {
        "label": "401(k) match",
        "amount": 2550,
        "category": "Benefits"
      },
      {
        "label": "Training & equipment",
        "amount": 2000,
        "category": "Overhead"
      }
    ],
    "payrollTaxes": 6733.5,
    "workersComp": 850,
    "taxBreakdown": [
      {
        "label": "Social Security",
        "rate": 6.2,
        "taxableWages": 85000,
        "amount": 5270,
        "kind": "payroll tax"
      },
      {
        "label": "Medicare",
        "rate": 1.45,
        "taxableWages": 85000,
        "amount": 1232.5,
        "kind": "payroll tax"
      },
      {
        "label": "Federal unemployment (FUTA)",
        "rate": 0.6,
        "taxableWages": 7000,
        "amount": 42,
        "kind": "payroll tax"
      },
      {
        "label": "State unemployment (SUTA)",
        "rate": 2.7,
        "taxableWages": 7000,
        "amount": 189,
        "kind": "payroll tax"
      },
      {
        "label": "Workers' compensation",
        "rate": 1,
        "taxableWages": 85000,
        "amount": 850,
        "kind": "insurance"
      }
    ],
    "warnings": []
  },
  "provenance": {
    "run": "https://aibizhub.io/api/run/contractor-vs-employee-calculator",
    "page": "https://aibizhub.io/contractor-vs-employee-calculator/",
    "methodology": "https://aibizhub.io/contractor-vs-employee-calculator/",
    "contract": "https://aibizhub.io/contracts/contractor-vs-employee-calculator.json",
    "engine": "https://aibizhub.io/engines/contractor-vs-employee-calculator.js",
    "engine_sha256": "7d1473f7438ae650676ea5945ea8965316f6134cac9e9bc56bf3a95bc95223fe",
    "build": "42c727dd573e245d1be09199a062c665d7f6f47e",
    "prices_verified": "2026-10-24",
    "prices_source": "https://aidevhub.io/api/models.json"
  },
  "disclaimer": "Business planning estimates — not legal, tax, or accounting advice.",
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "cite": "AI Biz Hub, Contractor vs Employee Calculator (engine 7d1473f7438a), https://aibizhub.io/api/run/contractor-vs-employee-calculator"
}