SASA
Maryland Paycheck Calculator: 1099 vs W-2 Income Calculator by SASA
Compare your take home pay between your W2 and 1099 job options in Maryland.
Simple Accounting app for self employed people in Maryland
How to use the Calculator
Here’s an example to show how SASA’s calculator works, using Naomi, a self-employed therapist from Maryland.
Naomi has received a W-2 job offer from a Maryland community center and wants to see if she’d take home more income by accepting the offer or continuing her private practice.
Step 1. Choose Your Home State
Your state of residence impacts how much tax you’ll pay. Each state has its own tax rules for both 1099 and W-2 workers.
• Some states, like the federal government, have progressive taxes, where tax rates increase with income.
• Others have a flat tax, applying the same rate to everyone.
• And a few states, such as Alaska, Florida, and Texas, don’t charge any income tax. Naomi lives in New Jersey, which has a 4.4% flat tax rate.
Step 2. Select Your Filing Status
Naomi is filing as “Single,” so she’ll only enter her own income details.
Single or Head of Household: This option is for those filing taxes alone.
Married Filing Jointly: This status is for married couples filing a joint return, which means including both incomes.
Step 3. Enter Your Annual W-2 Income
Now, add your expected annual salary as a W-2 employee. If you’re unsure, check job boards like Glassdoor or ZipRecruiter for average salaries in your field.
For example, Naomi’s W-2 job offer comes with a salary of $60,000, which aligns with average pay for therapists in Oregon.
Step 4. Enter Your Daily Work Hours
If you have an hourly rate for freelance work, enter it here. If not, consider researching rates for your field or using tools that help estimate a fair 1099 rate.
Naomi’s hourly rate in her private practice is $55, so she enters that amount.
Step 5. Enter Your 1099 Hourly Rate
In this step, specify how many paid hours you work each day on average. For freelancers, remember to only include billable hours, not unpaid time spent on tasks like marketing or admin.
Naomi typically works six billable hours each day.
Step 6. Enter Your Weekly Workdays
Add the number of days you work each week on average.
Naomi works five days a week, so she enters “5.”
Step 7. Enter Your Annual Vacation Days
Include the number of paid vacation days you plan to take. Many W-2 jobs offer paid leave, but freelancers should also consider taking days off for a balanced work-life routine.
Naomi plans to take 15 days off per year, including vacation and holidays, and enters that amount.
Step 8. Compare Your Results
Now you’re ready to see your results! SASA’s calculator will show how much income you’ll keep as a W-2 employee versus as a 1099 freelancer. It calculates the difference by factoring in:
W-2 payroll taxes vs. 1099 self-employment taxes
Federal income taxes
Your state tax bill
In Naomi’s case, she’d keep $13,509.95 more annually by sticking with her 1099 work.
Step 9. Account for Tax Write-Offs
The 1099 results show your gross income before tax deductions. Self-employed people can claim eligible business expenses as write-offs, which reduces the amount of taxable income.
Let’s say Naomi’s gross income is $80,850. With $20,000 in annual business expenses (such as office supplies, scheduling software, and rent for her home office), her taxable income drops to $60,850, saving her significantly on taxes.
Simple accounting software for self- employed people
Maximise deductions, and lower your tax bill. Simple expense tracking, bookkeeping, Invoicing, Receipt Scanning & bank reconciliation made easy.
Start lowering your tax bill today
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How SASA Helps You Track Write-Offs
One of the best ways to save on taxes is to keep track of your expenses. SASA’s app connects to your bank account, making it easy to record and categorize business expenses, which can be downloaded for tax filing or shared with your accountant.
For Naomi, these could include costs like:
Appointment scheduling software
Therapy workbooks and journals
Website hosting
Professional journal subscriptions
Part of her internet and rent (for a home office)
By using SASA to track write-offs, self-employed users save an average of $1,249 annually.
Start lowering your tax bill today