Cable techs in the US work under two arrangements: W2 employee or 1099 independent contractor. Neither is automatically better – but you must understand the difference before comparing offers, because a "$1,400/week 1099" and a "$1,400/week W2" are not the same money.
W2: the employer handles the taxes
As a W2 employee, income tax is withheld from every paycheck and the employer pays half of your Social Security and Medicare taxes (7.65%), plus unemployment insurance and workers' compensation coverage. Filing in April is simple. The trade-off: lower gross pay and less flexibility.
1099: higher gross, you run the taxes
As a contractor you receive the full amount with nothing withheld. In exchange you pay:
- Self-employment tax – 15.3% (12.4% Social Security + 2.9% Medicare) on net profit. This replaces the FICA that an employer would split with you.
- Income tax quarterly. The IRS expects estimated payments four times a year (Form 1040-ES). Miss them and penalties accrue.
A practical rule of thumb used by tax preparers: set aside 25–30% of every 1099 check until your own numbers prove otherwise.
Deductions: where 1099 wins money back
Contractors file Schedule C and deduct business expenses from taxable income:
- Vehicle mileage at the IRS standard rate (70¢ per business mile for 2025 – check the current-year rate). For a tech driving 25,000 work miles, that is a five-figure deduction.
- Tools, ladder, meter, phone plan, work clothing – the gear of the trade.
- Qualified Business Income (QBI) deduction – up to 20% of qualified net income for eligible filers.
Keep a mileage log from day one; an app does it automatically. No log, no deduction if audited.
The honest comparison
Because of self-employment tax and missing benefits, a 1099 rate needs to run roughly 15–20% above a W2 rate to be equivalent take-home. Piece-rate contractor work usually clears that bar for productive techs – that is exactly why experienced installers choose it – but you should do the math on your own numbers, not the recruiter's.
This article is general information, not tax advice. For your situation, talk to a tax professional – a one-hour consultation typically costs $100–200 and pays for itself.