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Gig Workers: Get Serious About Retirement With a Solo 401(k) | Business

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1 month ago

January 26, 2021

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Solo 401(k) employer contributions

When you contribute to your solo 401(k) as the employer, the maximum is 25% of your earned income. This part gets tricky because, as noted, earned income is your self-employment earnings after deducting half of your self-employment tax and your employer-funded contributions. That means your earned income and allowed employer contributions depend on each other.

In true IRS form, there’s a special worksheet and calculation to resolve that circular reference, and it involves discounting the plan’s contribution rate. Follow the math and the true maximum ends up being somewhere around 20% of your net business earnings.

Maximum 401(k) contributions

To reach the $58,000 cap, you’d need to make the full $19,500 employee contribution and then another $38,500 in employer contributions. That would require self-employment income of nearly $200,000. If you can afford to do that today, congratulations. If not, you can see that the solo 401(k) gives you plenty of room to grow into those high-dollar contributions.

How to open a solo 401(k)

You can open a solo 401(k) if you have self-employment income, a federal tax ID number, and no employees. If you don’t have a federal tax ID number, you can apply for one for free at IRS.gov.

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Fri 9 AM | Exchange Exemplar: Gig Work, Heaven Or Hell? – Jefferson Public Radio

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4 hours ago

February 25, 2021

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Fri 9 AM | Exchange Exemplar: Gig Work, Heaven Or Hell? Jefferson Public Radio

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GIG inks wind offtake with Danone in Poland – reNews

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10 hours ago

February 25, 2021

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Macquarie’s Green Investment Group (GIG) has signed an agreement with Danone companies in Poland to supply renewable energy through a 10-year power purchase agreement (PPA).

The power will be provided by GIG’s Jozwin wind farm, which was acquired by the business last year.

Route-to-market and balancing services will be provided by Axpo Polska, with Axpo also acting as the intermediary with food giant Danone, which will use Axpo as their licenced electricity provider.

This PPA will support Danone’s current decarbonisation goals as its Polish operations make up 6% of the business’ total energy usage around the world.

Danone is part of RE100, a collection of the companies that have committed to using 100% renewable electricity.

Danone’s commitment is to reach 100% of renewable electricity by 2030.

At the end of 2020, Danone exceeded its previous target of 50% by 2020, getting 54.3% of its electricity from renewable sources.

GIG Europe head Edward Northam said: “This agreement shows our ability to work in partnership with our customers, in this case Danone, to develop bespoke solutions under challenging market conditions.

“Having understood Danone’s specific needs, GIG in partnership with Axpo, has created and delivered a solution that meets Danone’s energy and carbon reduction ambitions in a cost-effective manner.”

GIG has now supported 18 corporates with PPAs, equating to 3GW of renewables capacity.

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Gig economy workers demand fair conditions | Guardian News

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17 hours ago

February 25, 2021

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James Yang is still angry over the road deaths of five colleagues at work who suffered the same pressure he felt as a food delivery driver.

The Chinese migrant worked for Hungry Panda but says the company booted him off the app after raising concerns about conditions.

Mr Yang earned as little as $12.50 an hour working 12-hour days.

He and fellow gig economy workers met with politicians at federal parliament on Thursday, campaigning for the same rights afforded to other workers.

Labor leader Anthony Albanese believes gig workers should be given the minimum wage and greater scope to access other base employment standards.

He urged the Morrison government to stand up to Uber and Hungry Panda in the same way it took on tech giants over the news media bargaining code.

“What we can’t have is a circumstance whereby we have two industrial relations systems,” Mr Albanese said.

“One that has pay, one that has annual leave, sick leave, one that has conditions that most Australians take for granted, and another whole section of society who are marginalised, who don’t enjoy any minimum wage.”

Industrial Relations Minister Christian Porter said he had a great deal of sympathy for Mr Yang but he’s not going to tell him there’s an easy fix.

He said the Fair Work Commission had consistently ruled gig workers were contractors and not subject to the same conditions as employees.

Mr Porter said media code negotiations with Facebook and Google were years in the making after a consumer watchdog inquiry.

He noted the cost to business of changing the gig model and impact on consumer pricing as key complexities in regulating the sector.

Rideshare driver Malcolm McKenzie said gig workers didn’t have the same avenues to pursue unfair dismissal.

“Drivers face the possibility of termination through the app as a result of a fallacious claim against them, unsubstantiated claim against them,” he said.

Delivery driver Ashley Moreland said he faced losing his job if orders weren’t met on the company’s timeline.

“It really is time that laws caught up to the technology and that we brought some rights to this industry,” he said.

“Because I think it’s a bit of a shame that in a modern developed democracy, we have this situation of third world work.”

Australian Associated Press

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