Free tool
1099, W-2, or EOR — what does each one actually cost?
US-domestic comparison: total loaded cost for a W-2 employee vs a 1099 contractor vs Employer of Record arrangements. Payroll tax, workers comp, benefits, and per-seat SaaS fees included.
The true cost of a worker is not the hourly rate or salary. It is the base pay plus employer-side payroll taxes (FICA, FUTA, SUTA), workers compensation premiums, benefits, retirement match, PTO accrual, and any platform or EOR fees. This calculator compares the four common US-domestic options — 1099 contractor direct, W-2 full burden, Employer of Record through HQ Simple, and Employer of Record through a competitor like Deel — so you can see the real numbers side by side.
True cost by arrangement
Frequently asked questions
- Because employers pay half of FICA (~7.65%), federal + state unemployment tax, workers compensation premium, and provide benefits (health, retirement match) and PTO. A "$100K salary" typically costs the employer $125-135K/year all-in.
Need an EOR quote for a specific country?
HQ Simple publishes country-specific pricing and generates full quotes in one business day. Direct service in US, Canada, UK, Australia; partner network for the rest of the world.
Pick the arrangement that fits your team.
Engage supports all four: 1099 contractor management, W-2 payroll integration, and HQ Simple EOR — on one database, one workflow.