Partner
Quarterly tax & books
Quarterly estimates and bookkeeping help for freelancers.
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Contractor vs W-2
The same gross is not the same tax. A contractor pays both halves of Social Security and Medicare, on 92.35% of profit, and can subtract expenses.
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Half of the 12.4% and 2.9% self-employment tax is subtracted before income tax. The qualified business income deduction is not included, so a contractor’s income tax here can run high. Quarterly set-aside is the tax total divided by four. It is not a 1040-ES voucher. State disability premiums are omitted in contractor mode because coverage is often optional.
Partner
Tax software
Turn this estimate into a filing plan when you’re ready.
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