Define roles, wages, and payroll burden
| Role | $/hr | Hrs/Wk | Count | Weekly | |
|---|---|---|---|---|---|
| Base Weekly Total | $0 | ||||
| Factor | Texas | New Jersey |
|---|---|---|
| Minimum Wage | $7.25 (federal) | $15.13 (2024) |
| State Income Tax | None | 1.4% - 10.75% |
| SUTA (Unemployment) | 0.31% - 6.31% New employer ~2.7% | 0.4% - 5.4% New employer ~2.8% |
| Workers Comp | ~$0.50-1.50/$100 Retail/service | ~$1.00-2.50/$100 Higher rates |
| Disability Insurance | Not required | Required (employee-paid) |
| Family Leave | Not required | Required (employee-paid) |
| FICA (both) | 7.65% employer share | |
| FUTA (both) | 0.6% (first $7k/employee) | |
W2 Employee: You pay employer FICA (7.65%), FUTA, SUTA, workers comp. You handle withholding. More control, more cost, more compliance.
1099 Contractor: They handle all taxes. But misclassification risk is real — must pass IRS tests (behavioral control, financial control, relationship type).