Methodology & sources

Wage and pay data

Wage benchmarks come from the U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics program, May 2025 release — the same national and state survey data used across government and industry. Where a tool shows a self-employed range, it is derived from the BLS employee median for that occupation and labeled as an estimate, because self-employed earnings are not surveyed the same way. BLS updates this data annually; the figures here are refreshed when the new release is published.

What to charge (rate calculator)

The rate tools build a bid the way contractors actually price work: materials and supplies, plus your labor (hours times your rate), plus other direct costs, plus a markup for overhead and profit. The tool shows both the markup and the resulting profit margin, which are not the same number. The 20–30% overall markup range referenced as typical for solo operators reflects published contractor guidance (Angi, NAHB); your own overhead decides where you land.

Taxes, W-2 vs 1099, and take-home

Tax estimates use federal rules for the 2026 tax year, published by the IRS in Revenue Procedure 2025-32 (reflecting the 2025 tax law commonly called the OBBBA). The calculators apply:

• Employee Social Security and Medicare at 7.65%, versus the full 15.3% self-employment tax on 92.35% of net profit for 1099 income, including the deduction for one-half of that tax. The Social Security portion of each stops at the annual wage base ($184,500 in 2026); Medicare has no cap;
• Federal income tax by bracket after the standard deduction for your filing status, plus the 0.9% Additional Medicare Tax above the IRS thresholds;
• The 20% qualified business income (QBI) deduction with its high-income phase-out, and the self-employed health-insurance deduction, on the 1099 side;
• Approximate state income tax by state.

State income tax is approximated and does not model every local tax, credit, or deduction. These tools estimate and compare take-home pay — they are not filing-grade and are not a substitute for a tax professional or tax-filing software.

Trucker pay

The trucker tools convert per-mile, percentage-of-load, or hourly pay into annual gross, then run the same federal and state tax logic above. The company-driver versus contract-driver comparison assumes a driver who does not own the truck, so it does not include fuel, truck, or cargo-insurance costs. It does apply the per-diem meal deduction for drivers subject to U.S. Department of Transportation hours-of-service rules ($80 per day, 80% deductible), and it lets you enter gear you buy yourself as a business expense.

Tip-out and tip pooling

Tip law figures come from the U.S. Department of Labor under the Fair Labor Standards Act (FLSA) and from individual state labor departments, reviewed June 2026. Each state page shows that state's minimum wage, tipped cash wage, and maximum tip credit, and explains who may legally share a tip pool. Two federal rules apply everywhere: tips belong to employees, and managers, supervisors, and owners may never take a share of a tip pool. Several states change their rates mid-year, so tip pages carry the review date and should be confirmed against your state labor department before you rely on them.

The primary sources, with links

Every figure on the site traces to one of these:

• Wages — the BLS Occupational Employment and Wage Statistics program (May 2025 release).
• Federal taxes — the IRS, for the 2026 tax year (Revenue Procedure 2025-32): brackets, the standard deduction, self-employment tax, the Additional Medicare Tax, and the QBI deduction. The Social Security wage base is the Social Security Administration figure for 2026.
• State income tax — the Tax Foundation state individual income tax rates and brackets for 2026, single-filer schedules, reviewed July 2026.
• Tip and wage law — the U.S. Department of Labor tipped-wage tables and each state's labor department.

The formulas, in plain language

The core formulas:

• Bid (rate calculator): (materials + labor + other costs) × (1 + markup%). Profit is the bid minus those direct costs; margin is profit ÷ bid.
• Self-employment tax: 15.3% of 92.35% of net profit — 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare with no cap. Half of it is deductible against income tax.
• Take-home comparison: gross, minus payroll or self-employment tax, minus federal and state income tax, minus your health premium, plus or minus the benefits each side carries.
• Tip split: by percentage, each tip-out is the base (sales or tips) times the percentage; by hours, each share is that person's hours divided by everyone's hours, times the pool.

Our standard: no unsourced numbers

We don't publish a number we can't trace to a primary source. Where a figure is a hard rule — a tax bracket, a tipped minimum wage, a per-diem rate — it comes from the government source above. Where a figure is a modeled estimate — an approximate state tax rate, a self-employed earnings range, a typical markup — it is labeled as an estimate, and the tool shows the assumption rather than hiding it. If we can't source a number and can't honestly call it an estimate, it doesn't go on the page.

How current the data is

Different figures change on different schedules, so they're maintained on different schedules:

• Wages — refreshed each year when the BLS publishes a new release (typically in spring).
• Federal tax figures — updated for each new tax year as the IRS publishes its annual inflation adjustments.
• Tip and wage law — reviewed and dated, because many states adjust their rates on January 1 or July 1; each state page carries its review date.

If you spot a figure that looks out of date, email contact@confirmguy.com.

What these tools are not

Every calculator on ConfirmGuy produces an estimate for planning and comparison. Nothing here is tax, legal, or financial advice, and no result should be treated as an official filing, determination, or guarantee. For decisions that carry real consequences — filing a return, classifying a worker, setting a company pay policy — confirm with a qualified professional or the relevant government agency. See the disclaimer for the full terms.