Benefits aren't perks — they're compensation. Here's how to put a real dollar number on each one.
Ask HR for the employer contribution — not your paycheck deduction, but what the company pays toward the premium. For a family plan, this is often $12,000-18,000/year. To replace it as a contractor, you pay the full premium. Individual plans: $5,000-10,000/year. Family plans: $15,000-24,000/year.
A 3% match on a $100,000 salary = $3,000/year of free money. A 50% match up to 6% = $3,000 on a $100,000 salary. This is the most straightforward benefit to value — it's a direct dollar amount matching a portion of your salary.
Calculate the daily value: salary ÷ 260 working days. 15 days of PTO on a $100,000 salary = $5,769/year. As a contractor, taking time off means no revenue — the "cost" of PTO is the foregone contractor income during that period.
Dental and vision insurance: typically $500-2,000/year employer contribution. Life insurance: usually low value ($200-500/year). HSA/FSA employer contributions: $500-1,500/year. Commuter benefits: up to $3,180/year tax-free. Professional development budget: $500-2,000/year typically.
For a $100,000 salary with typical benefits: health insurance ($8,000) + 401k match ($3,000) + PTO ($5,769) + other ($2,000) = roughly $18,769 in additional compensation beyond base salary. The employer's total cost is therefore ~$119,000 for a $100,000 salary employee — which frames what a contractor needs to charge to be equivalent.
Enter the actual benefit values for your W2 offer in the calculator.