{"id":709,"date":"2022-06-21T18:09:48","date_gmt":"2022-06-21T18:09:48","guid":{"rendered":"https:\/\/fieldnation.com\/?p=709"},"modified":"2025-08-20T15:45:37","modified_gmt":"2025-08-20T20:45:37","slug":"1099-vs-w2-labor-cost","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/1099-vs-w2-labor-cost","title":{"rendered":"The true cost of IT field service labor"},"content":{"rendered":"<div class=\"column\">\n<p>We get it \u2013 comparing costs is complicated. That\u2019s why this infographic illustrates two different ways to look at labor cost: from a work order perspective and an annualized perspective.<\/p>\n<p>When comparing the cost of a full-time W2 technician to the cost of putting that work on a 1099 network, many companies incorrectly think the 1099 network is more expensive. In the infographic, we break down in actual dollars and cents why W2 labor is the more expensive option, and bring to light the many cost factors companies often forget to consider.<\/p>\n<p>Ready to see the per work order savings and annual savings you can realize by shifting some of your non-core work to a 1099 network?<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"column\">\n<div class=\"details\">\n<p class=\"descriptor\">CONSIDERATIONS FOR CALCULATING COST<\/p>\n<\/div>\n<ul class=\"checklist\">\n<li class=\"check\">Utilization: 100% utilization isn\u2019t realistic for a W2. 1099s on the other hand are 100% utilized because you\u2019re only paying when you need them.<\/li>\n<li class=\"check\">Travel costs: With a W2, you pay them for every minute they\u2019re behind a windshield. Independent contractors generally build travel costs into their hourly rate.<\/li>\n<li class=\"check\">Additional costs: On top of a W2\u2019s base salary, there\u2019s a ~30% cost burden for benefits, plus overtime pay, plus mileage, plus availability pay, plus tools and training, and so on. The hourly rate of a 1099 is already fully burdened.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>We get it \u2013 comparing costs is complicated. That\u2019s why this infographic illustrates two different ways to look at labor cost: from a work order perspective and an annualized perspective. When comparing the cost of a full-time W2 technician to the cost of putting that work on a 1099 network, many companies incorrectly think the [&hellip;]<\/p>\n","protected":false},"author":53,"featured_media":18998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"xn-wppe-expiration":[],"xn-wppe-expiration-action":[],"xn-wppe-expiration-prefix":[],"footnotes":""},"content-group":[],"class_list":["post-709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","fldn_content_category-cost","fldn_content_type-infographic"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The true cost of IT field service labor | Field Nation<\/title>\n<meta name=\"description\" content=\"Comparing the hourly rate of a W2 resource and a 1099 resource is misleading. Here\u2019s how service organizations should evaluate labor costs instead.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fieldnation.com\/resources\/1099-vs-w2-labor-cost\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The true cost of IT field service labor | Field Nation\" \/>\n<meta property=\"og:description\" content=\"Comparing the hourly rate of a W2 resource and a 1099 resource is misleading. 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