Free tool · from The PTA Path

Does contract work actually pay more?

PRN and contract rates look bigger than your W-2 hourly, but a 1099 pays its own extra taxes and eats its own mileage. Type your real numbers. The honest comparison is the last line. Your numbers stay in your browser; nothing you type is saved or sent. Like every page here, this one loads Google Analytics and Google Fonts.

Your inputs

Your current W-2 hourly rate ($) PRN / contract hourly rate offered ($) Hours per week you would work this way Weeks per year you would work · 48 leaves time off Shifts per week · for the driving math Round-trip miles per shift Tax set-aside on 1099 income (%) · self-employment + income; example: 28 Unreimbursed business costs per month ($) · license share, phone, supplies

The honest comparison

W-2 gross (same hours)—

PRN gross—

Extra self-employment tax (the 1099 penalty)—

Mileage cost (IRS rate $0.76/mi from July 1, 2026)—

Other business costs—

PRN net, apples-to-apples—

PRN hourly after the 1099 penalty, mileage, and costs (before income tax)—

Cash to set aside for taxes (est.)—

PRN vs W-2, per year (both before income tax)—

Mileage is a real drag here. Fewer sites, closer sites, or a higher rate. Every mile between shifts is coming out of the premium.

The premium is thin once you count the 1099 penalty. Push for a higher rate, since a contractor should clear the W-2 by a real margin to be worth the extra risk and paperwork.

Rough by design. The 1099 penalty here is the extra 7.65% employer-side FICA a contractor pays that an employee does not; it is not your whole tax bill. It ignores benefits (a W-2 job may add health insurance and PTO worth real money) and any deductions beyond mileage. Set aside for taxes from day one and confirm the real numbers with a CPA.

This is one tool from The PTA Path

The PTA Path is coaching for physical therapist assistants who want more than a W-2: better-paid gig work, a cash wellness business of your own, or a route to ownership alongside a PT. Built for Florida PTAs.

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