A $100k contractor rate is not the same as a $100k salary. Here's what you need to account for to make a fair comparison.
Employer-paid payroll taxes (7.65% of salary), health insurance (often worth $6,000–$20,000/year), retirement contributions, paid vacation and sick days, paid holidays, and unemployment insurance. These add up to 25–40% of base salary in additional value.
A common rule of thumb: a contractor rate should be roughly 1.4–1.6× the equivalent employee salary to break even after covering these costs. A $70k salary might require a $100k–$112k contract rate to actually match.
Tax deductions for business expenses, flexibility to work multiple clients, and often higher hourly rates when demand is high. The financial comparison depends heavily on whether you'll be fully utilized as a contractor.