Contractor

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.

Reserved placement

This slot stays under the estimate. It is not a recommendation, and the paycheck above does not depend on it. No offer is sold here yet.

Partner

Reserved placement

A partner card would be labeled like this and would not sit between the salary field and the net number. There is no email gate.