Compare self-employment taxes, business deductions, and take-home pay to make informed employment decisions
📊 This calculator provides a comprehensive comparison between W-2 employee and 1099 independent contractor tax obligations using current IRS tax brackets, Social Security wage bases, and California state tax rates. The methodology accounts for the fundamental differences in how each classification handles income taxation.
🔹 For W-2 employees, the calculator computes FICA taxes at 7.65% (6.2% Social Security plus 1.45% Medicare) on wages up to the Social Security wage base of $176,100 for 2025 ($168,600 for 2024). The employer pays a matching 7.65%, which is not included in your tax burden but represents real cost to your employer.
🔹 Pre-tax deductions like 401(k) contributions and health insurance premiums reduce taxable income before federal and state income taxes are calculated.
🔹 The calculator applies the progressive federal tax brackets, starting at 10% for income up to $11,925 (single filers in 2025) and increasing through the 12%, 22%, 24%, 32%, 35%, and 37% brackets. California state income tax uses nine progressive brackets ranging from 1% to 12.3% plus an additional 1% mental health services tax on income exceeding $1 million.
🔹 For 1099 contractors, the calculator first reduces gross income by all eligible business deductions including home office, equipment, travel, and professional development expenses.
🔹 The resulting net self-employment income is then subject to self-employment tax at 15.3% (12.4% Social Security plus 2.9% Medicare) on 92.35% of net earnings, reflecting the IRS formula that accounts for the employer-equivalent portion.
🔹 The calculator then applies the self-employment tax deduction, allowing you to deduct half of the self-employment tax paid from your adjusted gross income. If you qualify for the Qualified Business Income (QBI) deduction under IRC Section 199A, the calculator reduces taxable income by up to 20% of qualified business income, subject to phase-out thresholds.
🔹 The calculator models different retirement scenarios including traditional 401(k) with employer matching for W-2 employees, and SEP-IRA or Solo 401(k) options for 1099 contractors.
💡 Pro Tip: Solo 401(k) plans allow both employee contributions (up to $23,500 for 2025) plus employer contributions (~20% of net self-employment income using the reduced rate for sole proprietors), potentially reaching $70,000 in total annual contributions. This significantly exceeds the $23,500 employee-only limit available to most W-2 workers.
✅ All tax rates, brackets, and limits are sourced directly from IRS Revenue Procedures and California Franchise Tax Board publications. The calculator is updated annually to reflect inflation adjustments to tax brackets, standard deductions, and contribution limits.
⚠️ While this calculator provides accurate estimates based on the information you provide, individual circumstances vary and you should consult a qualified tax professional for personalized advice.
When a company offers you a choice between W-2 employment and 1099 contracting, use this calculator to determine the minimum 1099 rate needed to match your W-2 take-home pay. Many contractors underestimate the additional costs of self-employment and accept rates that actually reduce their net income. As a general rule, your 1099 rate should be 25-40% higher than the equivalent W-2 salary to account for self-employment taxes, health insurance, retirement contributions, and unpaid time off.
When comparing job offers from different companies, some may offer W-2 employment while others offer 1099 arrangements. This calculator helps you compare apples to apples by converting both offers to after-tax income. Remember to factor in non-monetary benefits like health insurance quality, 401(k) matching, paid leave, and job security when making your final decision.
If you're considering leaving W-2 employment to start freelancing or consulting, this calculator helps you understand the tax implications before making the leap. Many new contractors are surprised by the quarterly estimated tax requirements and the higher overall tax burden. Use this tool to set realistic income targets and build appropriate cash reserves before transitioning.
If you're already working as a 1099 contractor, use this calculator to model how different business expenses affect your tax burden. You can experiment with home office deductions, equipment purchases, retirement contributions, and other deductions to find the optimal tax strategy. The calculator shows how each deduction reduces both your income tax and self-employment tax liability.
One significant advantage of 1099 status is access to retirement plans with higher contribution limits. Use this calculator to compare how SEP-IRA or Solo 401(k) contributions affect your tax burden compared to a traditional 401(k) with employer matching. High earners may find that the expanded retirement contribution limits more than offset the higher self-employment taxes.
If you believe you've been misclassified as a 1099 contractor when you should be a W-2 employee, this calculator helps you understand the financial impact. Misclassified workers pay the employer's share of FICA taxes and miss out on unemployment insurance, workers' compensation, and other protections. Use these calculations when documenting potential misclassification claims with the IRS or California Labor Commissioner.
The IRS uses a three-category test to determine whether a worker is an employee or independent contractor. Behavioral control examines whether the company directs how work is performed, including training, instructions, and evaluation methods. Financial control looks at whether the worker has unreimbursed business expenses, investment in facilities, availability to the open market, payment method, and opportunity for profit or loss. The type of relationship considers written contracts, employee benefits, permanency of relationship, and whether services are key to the company's regular business.
Self-employment tax is the self-employed person's equivalent of FICA taxes. While W-2 employees pay 7.65% and their employers pay a matching 7.65%, self-employed individuals pay the entire 15.3% themselves. This consists of 12.4% for Social Security (on income up to $176,100 in 2025) and 2.9% for Medicare (on all income). An additional 0.9% Medicare surtax applies to self-employment income exceeding $200,000 for single filers.
The IRS requires self-employment tax to be calculated on 92.35% of net self-employment income, not the full amount. This reflects the fact that employers can deduct their share of FICA taxes as a business expense. The calculation is: Net SE Income x 0.9235 x 0.153 = Self-Employment Tax. Additionally, you can deduct half of the self-employment tax paid from your adjusted gross income, partially offsetting the higher tax burden.
The Tax Cuts and Jobs Act created a 20% deduction on qualified business income for pass-through entities and sole proprietors. For 2025, this deduction phases out for single filers with taxable income between $197,300 and $247,300, and for married filing jointly between $394,600 and $494,600. Specified service trades or businesses (SSTBs) including law, accounting, health, consulting, and financial services face additional limitations that may eliminate the deduction entirely at higher income levels.
Unlike W-2 employees who have taxes withheld from each paycheck, 1099 contractors must pay estimated taxes quarterly. The IRS requires estimated payments if you expect to owe $1,000 or more in tax for the year after subtracting withholding and refundable credits. Payment due dates are April 15, June 15, September 15, and January 15 of the following year. Underpayment penalties are calculated at the federal short-term rate plus 3 percentage points.
California's Assembly Bill 5 (AB5) codified the "ABC test" for determining worker classification. Under this stricter standard, a worker is presumed to be an employee unless the hiring entity can prove all three factors: (A) the worker is free from control and direction, (B) the worker performs work outside the usual course of the hiring entity's business, and (C) the worker is customarily engaged in an independently established trade or occupation. Proposition 22 created exceptions for app-based transportation and delivery workers.
The home office deduction is available only to self-employed individuals and independent contractors, not W-2 employees (the employee home office deduction was eliminated by the Tax Cuts and Jobs Act from 2018-2025). You can use either the simplified method ($5 per square foot up to 300 square feet, maximum $1,500 deduction) or the regular method (calculating actual expenses based on the percentage of home used for business). The space must be used regularly and exclusively for business.
Self-employed individuals have access to retirement plans with significantly higher contribution limits than traditional 401(k) plans. A SEP-IRA allows contributions of ~20% of net self-employment income (reduced rate for sole proprietors), to a maximum of $70,000 for 2025. A Solo 401(k) allows employee contributions up to $23,500 (plus $7,500 catch-up for those 50+) plus employer contributions of ~20% of net income, with the same $70,000 combined maximum. These enhanced limits can provide substantial tax savings for high-earning contractors.
The most common mistake contractors make is accepting hourly or project rates that don't adequately compensate for the additional tax burden and lost benefits. If a company offers you $50/hour as a W-2 employee or $55/hour as a 1099 contractor, the W-2 option is almost certainly better financially. You need at least a 25-40% premium to offset self-employment taxes, health insurance costs, retirement contributions, and unpaid time off. Use this calculator to determine your true break-even rate before accepting any 1099 engagement.
New contractors often spend their gross income without reserving funds for quarterly estimated taxes. Unlike W-2 employees who have taxes automatically withheld, contractors must actively save and pay taxes quarterly. A good rule of thumb is to immediately transfer 25-30% of every payment received to a separate tax savings account. Missing quarterly payments triggers penalties and can create cash flow emergencies at tax time.
Every legitimate business expense reduces both your income tax and self-employment tax. Contractors who don't track expenses miss thousands of dollars in deductions annually. Common overlooked deductions include home office space, internet and phone bills (business percentage), professional development and subscriptions, mileage for business travel, equipment and software, professional liability insurance, and bank fees on business accounts. Use accounting software or a dedicated spreadsheet to track every business expense with receipts.
Many contractors assume they automatically qualify for the 20% Qualified Business Income deduction without understanding the limitations. Specified service trades or businesses (law, accounting, health, consulting, financial services, and others) face income-based phase-outs that can eliminate the deduction entirely. Additionally, the deduction is limited to the lesser of 20% of QBI or 50% of W-2 wages paid (or 25% of wages plus 2.5% of qualified property). Solo contractors with no employees may face limitations at higher income levels.
Contractors have access to retirement plans with contribution limits nearly three times higher than traditional 401(k) plans, yet many fail to take advantage. A Solo 401(k) or SEP-IRA can shelter up to $70,000 per year from taxes (2025), dramatically reducing both income tax and potentially self-employment tax liability. Even modest contributions provide significant tax savings and build long-term wealth that compensates for the lack of employer matching.
California's AB5 law imposes stricter worker classification standards than federal law. What qualifies as legitimate independent contractor status under IRS rules may still be considered misclassification under California law. Contractors working primarily with California clients should ensure their arrangement satisfies the ABC test, not just the IRS common law factors. Misclassification can result in liability for unpaid wages, overtime, expense reimbursement, and penalties.
Operating without a separate business bank account makes expense tracking difficult, increases audit risk, and can complicate legal liability. Open a dedicated business checking account, use it exclusively for business transactions, and pay yourself a regular "salary" transfer to your personal account. This discipline simplifies bookkeeping, supports the legitimacy of your business deductions, and creates a clear paper trail if questioned by the IRS.
The single most effective tax reduction strategy for high-earning contractors is maximizing retirement contributions. A Solo 401(k) allows you to contribute as both employee ($23,500 in 2025, plus $7,500 if age 50+) and employer (~20% of net self-employment income after the SE deduction), potentially sheltering $70,000 from taxes. These contributions reduce your taxable income dollar-for-dollar and grow tax-deferred until retirement. If you're in the 32% federal bracket plus 9.3% California, a $70,000 contribution saves over $29,000 in current-year taxes.
Once your net self-employment income exceeds approximately $80,000-$100,000 annually, electing S-corporation status may reduce your overall tax burden. As an S-corp, you pay yourself a "reasonable salary" (subject to employment taxes) and take remaining profits as distributions (not subject to self-employment tax). This strategy can save 15.3% on the distribution portion, potentially thousands of dollars annually. However, S-corps require additional payroll administration, quarterly filings, and reasonable compensation analysis.
Unlike W-2 employees, contractors using cash-basis accounting have flexibility in when income is recognized and expenses are deducted. If you expect lower income next year, consider delaying year-end invoices until January. If you expect higher income next year, prepay January expenses or make equipment purchases in December. This strategy is particularly valuable when you're near tax bracket thresholds or QBI phase-out ranges.
While the regular home office deduction method may yield a larger deduction, the simplified method ($5 per square foot up to 300 square feet) is audit-proof and requires no expense tracking. If you use 200 square feet regularly and exclusively for business, you get a $1,000 deduction with zero record-keeping burden. For many contractors, the simplicity and reduced audit risk outweigh the potential for a slightly larger deduction.
Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents as an above-the-line deduction, reducing AGI. This deduction is not limited by the 7.5% AGI floor that applies to other medical expenses. However, the deduction cannot exceed your net self-employment income, and you cannot claim it if you're eligible for employer-subsidized coverage through a spouse's plan.
The standard mileage rate for 2025 is $0.70 per business mile. If you drive 10,000 business miles annually, that's a $7,000 deduction requiring only a simple mileage log. Use a mileage tracking app that automatically records trips, or maintain a contemporaneous log with date, destination, business purpose, and miles driven. The deduction covers client meetings, business errands, travel to co-working spaces, and any other business-related driving.
While you must pay estimated taxes quarterly to avoid penalties, there's flexibility in how you calculate the required amounts. The "safe harbor" rule allows you to pay 100% of last year's tax liability (110% if AGI exceeded $150,000) in equal quarterly installments without penalty, even if this year's income is much higher. This can provide cash flow benefits if your income is growing, though you'll owe a larger balance at filing time.
🧮 I've built several other tax planning tools to help optimize your financial strategy. My Quarterly Estimated Tax Calculator helps you calculate the correct estimated payment amounts to avoid IRS penalties. My Business Tax Calculator Hub includes tools for QBI deduction, S-Corp savings analysis, and home office deduction calculations. For equity compensation, see my Equity Vesting Calculator to understand the tax implications of stock options and RSUs.
Worker classification in California is governed by AB5 and its amendments, which impose stricter standards than federal law. The California Labor Commissioner's website provides guidance on the ABC test and exceptions for specific professions. If you believe you've been misclassified, you may file a wage claim with the Labor Commissioner or report the employer to the Employment Development Department (EDD) for unemployment insurance fraud.
The IRS provides several resources for understanding worker classification. Form SS-8 allows workers or employers to request an official determination of worker status. Publication 15-A (Employer's Supplemental Tax Guide) explains the common law factors used to determine classification. Publication 1779 provides a checklist for determining independent contractor status. If you believe you've been misclassified, Form 8919 allows you to report uncollected Social Security and Medicare taxes on your wages.
1099 contractors must file Schedule C (Profit or Loss from Business) with their Form 1040 to report business income and expenses. Schedule SE calculates self-employment tax. Form 1040-ES is used to make quarterly estimated tax payments. If you elect S-corporation status, you'll need to file Form 1120-S annually and may need Form 2553 (Election by a Small Business Corporation) to make the initial election.
The IRS provides detailed guidance on self-employed retirement plans in Publication 560 (Retirement Plans for Small Business). For Solo 401(k) plans, you'll need a plan document and may need Form 5500-EZ once assets exceed $250,000. SEP-IRA plans are established using Form 5305-SEP. Most major brokerages offer self-employed retirement accounts with no setup fees and no annual administration costs.
While this calculator and these resources provide general guidance, every situation is unique. Consider consulting a CPA or enrolled agent for tax planning advice, an employment attorney if you have classification disputes, and a financial advisor for retirement planning. I offer consultations on employment classification, contractor agreements, and related business law matters for California clients.
❓ Comprehensive answers to common questions about 1099 vs W-2 classification, taxes, and planning strategies.
W-2 employees work under employer control with taxes withheld automatically, receiving benefits like health insurance, paid leave, and unemployment protection. The employer pays half of FICA taxes (7.65%) and handles all payroll administration. 1099 independent contractors control how they complete work, pay self-employment taxes quarterly at the full 15.3% rate, and receive no employer benefits. However, contractors can deduct business expenses and may access higher retirement contribution limits. The IRS uses three categories to determine classification: behavioral control, financial control, and the type of relationship between the parties.
The IRS examines the totality of circumstances using three main categories. Behavioral control asks whether the company controls how the work is done, including training, instructions, and evaluation processes. Financial control examines unreimbursed business expenses, investment in facilities, availability to the market, method of payment, and opportunity for profit or loss. The type of relationship looks at written contracts, employee benefits, permanency of the relationship, and whether services are a key aspect of the business. No single factor is determinative; the IRS weighs all factors to determine the overall nature of the relationship.
California's AB5 law, effective January 2020, codified the stricter "ABC test" from the Dynamex decision. Under this test, a worker is presumed to be an employee unless the hiring entity proves ALL three factors: (A) the worker is free from control and direction in performing the work, (B) the work performed is outside the usual course of the hiring entity's business, and (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature. Prong B is particularly challenging for many businesses, as it essentially prohibits using contractors for core business functions. Certain professions have statutory exemptions, and Proposition 22 created carve-outs for app-based drivers.
No, worker classification is determined by the nature of the working relationship, not by agreement between the parties. Even if both the worker and company prefer 1099 status and sign a contract stating the worker is an independent contractor, the IRS and state agencies can still reclassify the worker as an employee if the actual working conditions indicate an employment relationship. Signing a 1099 contract when you're actually functioning as an employee doesn't change your legal status - it just means you're being misclassified. Both federal law and California law strictly prohibit misclassification regardless of what the parties agree to.
1099 contractors pay self-employment tax at 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment earnings, while W-2 employees only pay 7.65% because employers pay the other half. This difference alone means contractors pay an extra 7.65% on income up to the Social Security wage base ($168,600 for 2024). Additionally, contractors must pay estimated taxes quarterly, manage their own tax withholding, and cannot take advantage of pre-tax employer benefits like 401(k) matching or employer-subsidized health insurance. However, contractors can offset these costs through business deductions, the self-employment tax deduction, and potentially the QBI deduction.
The QBI deduction (IRC Section 199A) allows eligible self-employed individuals and pass-through business owners to deduct up to 20% of qualified business income from taxable income. For 2024, single filers with taxable income below $191,950 and married filing jointly below $383,900 generally receive the full 20% deduction. Above these thresholds, limitations apply based on W-2 wages paid and business property, and certain "specified service trades or businesses" (including law, accounting, consulting, and financial services) face complete phase-out at higher income levels. At $150,000 net business income with no limitations, the QBI deduction saves approximately $10,500 in federal taxes.
As a general rule, your 1099 rate should be 25-40% higher than an equivalent W-2 salary to account for: self-employment tax (adds ~7.65% cost), health insurance ($5,000-$25,000/year), retirement matching (typically 3-6% of salary), paid time off (10-15% of compensation value), and other benefits like disability insurance, professional development, and equipment. For example, if a W-2 job pays $100,000, you'd need approximately $125,000-$140,000 as a 1099 contractor to have equivalent take-home pay. Use this calculator to get an exact comparison based on your specific circumstances.
The self-employment tax deduction allows you to deduct the employer-equivalent portion of your self-employment tax (50% of the total) from your adjusted gross income. This deduction is available even if you don't itemize - it's an "above the line" deduction that reduces AGI. For example, if you pay $15,300 in self-employment tax (15.3% on $100,000 net earnings), you can deduct $7,650 from your income, saving approximately $2,300 in federal taxes if you're in the 30% combined bracket. This deduction partially compensates for the fact that employees don't pay tax on their employer's share of FICA.
1099 contractors can deduct ordinary and necessary business expenses including: home office (either actual expenses or simplified method of $5/sq ft up to 300 sq ft), equipment and supplies, software and subscriptions, professional development and training, business travel and mileage (67 cents/mile for 2024), phone and internet (business-use portion), professional services like legal and accounting, business insurance, advertising and marketing, professional memberships and dues, and health insurance premiums (as an adjustment to income, not Schedule C). All deductions must be for business purposes and properly documented with receipts and records.
The home office deduction requires a space used regularly and exclusively for business as your principal place of business. You can calculate it two ways: the simplified method allows $5 per square foot up to 300 square feet ($1,500 maximum), while the regular method calculates actual expenses (rent/mortgage interest, utilities, insurance, repairs) based on the percentage of your home used for business. For example, if your home office is 200 sq ft in a 2,000 sq ft home (10%), you can deduct 10% of qualifying expenses. The regular method often provides larger deductions but requires more documentation. Note: W-2 employees cannot claim home office deductions under current tax law.
Yes, self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents as an adjustment to gross income (not as an itemized deduction). This includes medical, dental, and qualified long-term care insurance. The deduction cannot exceed your net self-employment income and cannot be claimed for any month you were eligible for employer-subsidized coverage. If you're married to someone with employer coverage, you can only deduct premiums if you're not eligible to be covered under their plan. This deduction directly reduces AGI, providing benefits beyond a Schedule C expense deduction.
Federal estimated tax payments are due: Q1 (Jan-Mar income) - April 15, Q2 (Apr-May income) - June 15, Q3 (Jun-Aug income) - September 15, and Q4 (Sep-Dec income) - January 15 of the following year. California estimated taxes follow the same schedule. If a due date falls on a weekend or holiday, the deadline moves to the next business day. You can pay via IRS Direct Pay, EFTPS, credit/debit card (with fees), or by mailing Form 1040-ES vouchers. Missing deadlines results in underpayment penalties calculated daily, though penalties can be avoided through safe harbor provisions.
You can avoid underpayment penalties by meeting one of these safe harbors: pay at least 90% of your current year tax liability through withholding and estimated payments, OR pay 100% of last year's tax liability (110% if your AGI exceeded $150,000). For new self-employed individuals, the previous year safe harbor based on W-2 withholding often provides the easiest path. You can also avoid penalties if you owe less than $1,000 after subtracting withholding and credits. If your income varies significantly throughout the year, the annualized income installment method can reduce required payments in early quarters. California has similar rules with a $500 penalty threshold.
Self-employed individuals have access to powerful retirement options with contribution limits exceeding traditional employee plans: SEP-IRA allows contributions up to 25% of net self-employment income (maximum $69,000 for 2024) with simple setup and no annual filings. Solo 401(k) allows employee contributions ($23,000, or $30,500 if over 50) plus employer contributions (up to 25% of net SE income), potentially reaching $69,000 total. Solo 401(k) also offers Roth options and loan provisions. SIMPLE IRA is available for those with employees but has lower limits. Traditional and Roth IRAs have $7,000 limits ($8,000 if over 50) and can be combined with other plans.
Traditional (pre-tax) retirement contributions reduce your adjusted gross income dollar-for-dollar, lowering both federal and state income tax. For SEP-IRA and Solo 401(k) employer contributions, the deduction also reduces the income subject to the QBI deduction calculation, slightly limiting that benefit. Employee contributions to Solo 401(k) reduce AGI but not net self-employment income, so they don't reduce self-employment tax. If you're in the 24% federal bracket and 9.3% California bracket, a $50,000 retirement contribution saves you approximately $16,650 in current-year taxes. These contributions grow tax-deferred until retirement, when withdrawals are taxed as ordinary income. Roth contributions (available in Solo 401(k)) don't provide current-year tax savings but grow tax-free.
For misclassified workers, the consequences include paying the employer's share of FICA taxes (an extra 7.65%), losing access to unemployment insurance if the work ends, having no workers' compensation coverage for injuries, missing out on overtime pay and minimum wage protections, and being denied employee benefits. For employers, misclassification penalties include back payment of employment taxes plus penalties and interest, liability for unpaid minimum wage and overtime under federal and state law, workers' compensation penalties, unemployment insurance fraud charges, and in California, penalties of $5,000-$25,000 per violation under AB5. The IRS Voluntary Classification Settlement Program allows employers to prospectively reclassify workers with reduced penalties.
If you believe you've been misclassified as a 1099 contractor when you should be a W-2 employee, you have several options. File IRS Form SS-8 (Determination of Worker Status) to request an official classification determination. File IRS Form 8919 with your tax return to pay only the employee share of FICA taxes and report the employer for the unpaid portion. File a wage claim with the California Labor Commissioner for unpaid wages, overtime, expense reimbursement, and penalties. Report the employer to the California EDD for unemployment insurance fraud. Consult an employment attorney about potential claims for back wages, benefits, and statutory penalties. California law provides strong protections against retaliation for reporting misclassification.
This arrangement is legally possible but receives heightened scrutiny from the IRS and state agencies because it's often used to avoid employment taxes and benefits obligations. For dual status to be legitimate, the 1099 work must be genuinely different from and separate from the W-2 work. For example, an employee who works as a software developer (W-2) might legitimately provide wedding photography services (1099) to the same company. However, if the 1099 work is essentially the same as or an extension of the W-2 work - for example, overtime hours paid as 1099 instead of W-2 - this is likely misclassification. The entire relationship will be examined, and inconsistent treatment is a red flag for auditors.
1099 contractors have significantly fewer legal protections than W-2 employees. Contractors are not covered by: minimum wage and overtime laws (FLSA), anti-discrimination laws (Title VII, ADA, ADEA) in most circuits, unemployment insurance, workers' compensation, FMLA leave rights, COBRA health insurance continuation, WARN Act layoff notices, or ERISA retirement plan protections. Contractors do retain protection under civil rights laws for intentional discrimination in contract formation, general contract law for payment disputes, and state laws that may extend some protections to contractors. Contractors also have freedom to work for multiple clients, set their own schedules, and deduct business expenses - advantages not available to employees. The trade-off between flexibility and protection is a key consideration in evaluating 1099 opportunities.
Need personalized guidance on 1099 vs W-2 classification, contractor agreements, or tax planning strategies? I offer consultations for California clients on employment law and business matters.