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Do Gig Platform Workers Need New Tax Rules Now That Reporting To IRS Is Expanding?



Non-employee platform-based work seems like a sufficiently distinct phenomenon to require changes to either tax forms or the tax code to accommodate the new work arrangements that have arisen over the past decade or so, but the only truly novel element in platform work might be the online platform.

The IRS maintains that platform work is essentially an internet-fueled spin on the well-established concept of self-employed workers running small businesses.

While those gig economy taxpayers may require increased outreach because they may not have a complete understanding of their tax obligations, the rise of platform work probably doesn’t require any new rules, particularly once information reporting gets underway in its expanded format. Because of the changes in the American Rescue Plan Act of 2021, that expansion is coming.

Increased tax information reporting for participants in platform work is step 1 in increasing compliance, even if compliance isn’t lower than typical for taxpayers with self-employment earnings. Educating taxpayers on their obligations will be the second step, as noted in a previous post.

To that point, there has been a dearth of information about platform workers’ tax compliance in part because it’s hard to identify which taxpayers are doing platform-based work. But the deficiencies in the data the IRS has about platform workers will be dramatically shored up once the information reporting begins. 

The IRS explained, in response to a Government Accountability Office report in May 2020, that there’s no evidence that taxpayers who use platforms to find work are at any greater risk of noncompliance with their tax obligations than any other self-employed taxpayer.

Perhaps the unique challenge for taxpayers who begin platform work is that they often seem to be turning to it to supplement other income or as a bridge between non-platform jobs. Given the ease of signing up with a platform, taxpayers may not initially consider their tax obligations when opting to do platform work. 

The IRS already does outreach to self-employed platform workers, including through its year-old Gig Economy Tax Center, which provides basic instructions on recordkeeping, paying quarterly estimated taxes, and tax return filing.

The principal message is that taxpayers performing platform work who aren’t employees are self-employed and have the same filing obligations as any other self-employed taxpayers. Other options that have been floated for helping platform workers comply with their tax obligations might not be as attractive in the wake of information reporting. 


The May 2020 GAO report said the IRS could add a question to Form 1040, Schedule C, “Profit or Loss From Business,” or Form 1099-NEC, “Nonemployee Compensation,” asking whether a taxpayer had performed platform work. That would probably take the form of a checkbox, much like the ones that already ask whether a taxpayer has foreign bank accounts or bought or sold cryptocurrency.

The IRS disagreed with the recommendation to change the forms on the grounds that it already had a communication strategy in place for helping to educate platform workers, and changing the forms would require added costs. 

The IRS said that while a form change “could provide a count of self-reported platform workers, it is not expected to serve a benefit to improve tax administration, nor does the IRS see a clear jeopardy to tax compliance without implementation of this recommendation.”

The foreign bank account and cryptocurrency questions on Form 1040 have a slightly different role in administering the tax laws than a hypothetical platform work question would. Because every taxpayer must answer them, they serve as a speed bump for taxpayers, reminding them of their obligations, but the IRS also uses them in the enforcement context.

Before the UBS investigation, which prompted legislation that effectively dismantled bank secrecy across the globe, some taxpayers were unaware of their obligation to report their foreign bank accounts, and there was no reporting from foreign financial institutions before the Foreign Account Tax Compliance Act.

The dynamic at play in the platform work space is sufficiently distinct from foreign bank account and cryptocurrency ownership that the IRS’s position here makes sense. 

Standard Business Deduction 

An option to streamline the tax compliance of platform workers that would require action by Congress is a simplified deduction for business expenses.

A standard deduction would be calculated as a percentage of gross earnings for specific types of platform work. It would reduce the complexity platform workers face in filing their tax returns, while also simplifying administration, particularly the examination function, for the IRS.

It could be enacted with an option to deduct actual business expenses instead. Kathleen DeLaney Thomas of the University of North Carolina proposed a standard business deduction to replace the current requirement for self-employed taxpayers to track and report their business expenses, with a deduction of 60% of gross receipts.

Congress isn’t terribly likely to consider a standard business deduction anytime soon because of the American Rescue Plan’s increase in information reporting and the likely negative revenue estimate that a standard deduction would have.

If, once information reporting is in full effect, it becomes apparent that platform workers have particularly high compliance challenges, the standard business deduction might reemerge as a way to help the IRS and taxpayers.

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Gig Economy Market 2021 | Covid19 Impact Analysis | Business Outlook, Growth, Revenue, Trends and Forecasts 2026




Gig Economy Market
A new business intelligence report released by Qurate Research with the title “Global Gig Economy Market Research Report 2021” that targets and provides COVID-19 Outbreak comprehensive market analysis with prospects to 2026. The analysts of the study have acquired, extensive research methodologies and data sources (i.e. Secondary & Primary Sources) to generate collective and useful information that delivers the latest market undercurrents and industry trends. The report provides a comprehensive overview including Definitions, Scope, Application, Production and CAGR (%) Comparison, Segmentation by Type, Share, Revenue Status and Outlook, Capacity, Consumption, Market Drivers, Production Status and Outlook and Opportunities, Export, Import, Emerging Markets/Countries Growth Rate. The report presents a 360-degree overview of the competitive landscape of the industries.

The report evaluates the global Gig Economy market size, share, and growth rate and provides an accurate projection for similar facets by thoroughly studying historic as well as the current status of the market. The report presents a market analysis based on revenue and sales volume. It also allows for gaining comprehensive acumen in upcoming business opportunities, obstacles, threats, and hindering factors in the market.

Besides, the report sheds light on the significant evaluation of leading contenders who have been performing in the market to satisfy the desired needs and anticipations of end-users. The report offers in-depth insights into leading market players, alongside their corporate and organizational profiles, financial details, manufacturing methodologies, and so forth. Statistical details in terms of revenue, sales volume, profit margin, and CAGR have been included in the report. Additionally, the report comprises recent strategic and tactical moves that help to form their own lucrative business stratagem and make profound business decisions.

This report categorizes the market based on manufacturers, regions, types and applications.

A thorough assessment of leading manufacturers including their profiles, pricing structure, and product specifications of Gig Economy Market:

Favor Delivery
Twago Enterprise

Key Market Segmentation as follows –

Type Segmentation

(APP-based, Website-based)

Industry Segmentation

(Freelancer, Independent Contractor, Project Worker, Part-Time)

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Market Segment by RegionsNorth America (United States, Canada and Mexico), Europe (Germany, France, UK, Russia and Italy), Asia-Pacific (China, Japan, Korea, India and Southeast Asia), South America (Brazil, Argentina, Colombia etc.), Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

Additionally, the report discusses provincial trade frameworks, entry barriers, and varying economic structures.

Moreover, the report presents industry overview in a portrayed view to offer a wide acuity of the global Gig Economy market. It also provides a detailed analysis based on a competitive landscape that aids a reader to obtain a thorough perception of competitive advantages, contender’s missions, core values, and niche markets. It also highlights how the Gig Economy market is associated with its peer and parent market. Further, the report illuminates its impacts on the international economy throughout the period between 2021 and 2026.

If you are involved in the Global Gig Economy industry or intend to be, then this study will provide you a comprehensive outlook. It is vital you keep your market knowledge up to date segmented by major players. If you have a different set of players/manufacturers according to geography or needs regional or country segmented reports, we can provide customization according to your requirement.

The Global Gig Economy Market Report Enfolds:

• Extensive delineation of Gig Economy industry overview.
• Cardinal synopsis of every leading contender performing in the global Gig Economy market.
• Statistical assessment of Gig Economy market size, share, revenue, growth rate, and sales volume.
• Precise details based on Gig Economy market segmentation.
• Valuable information on the changing-pricing structure.

Major Points Covered in TOC:

Gig Economy Market Overview
Gig Economy Market Segment by Type
Gig Economy Market Analysis by Applications
Gig Economy Market Analysis by Regions
Gig Economy Market Dynamics
Gig Economy Manufacturers Profiles
Gig Economy Market Forecast (2021-2026)
Sales Channel, Distributors, Traders and DealersResearch Findings and Conclusion

Any query? Enquire Here For Discount Or Report Customization

Contact Us:
E-mail:[email protected]
Ph: US – +13393375221

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Note: In order to provide more accurate market forecast, all our reports will be updated before delivery by considering the impact of COVID-19.

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What freelancers should know about navigating the gig economy




In this episode of In The Know’s Getting Rich, financial expert Carmen Perez chats with certified financial planner Brittney Castro on everything freelancers should know about the gig economy.

The gig economy refers to freelancers, contractors or anyone with a specialized skill set including graphic design, home repairs and web development. But freelancers have to consider things full-time works may not have to, like the cost of private insurance and setting aside taxes. When you’re self-employed understanding personal finance can make or break you but it can also offer you freedoms a nine to five can’t.

“The main feature of this type of work is freelancers get to take on as much or as little work as they want, set their own pay and generally work across a variety of different industries,” Perez said.

A common misconception Castro, the founder of Financially Wise Inc., runs into with freelancers is the belief that creatives can’t handle the financial side of things.

“Creativity is so valuable with finances and wealth creation. If you just stop saying that and take the time to learn and get yourself empowered, you’ll probably be really good at managing money,” Castro said.

So to ensure you get all those sweet freelancing perks, you’ve got to be prepared.

“Make sure you have a separate account for taxes. All and any money that you make, [make sure] you’re setting aside the right amount of taxes for that,” Perez said.

Keeping records in one place whether it’s QuickBooks or a notebook, will make things that much easier on tax day. 

Another piece of advice from Castro was to think of yourself like a business from day one.

“Separate your business and personal checking accounts right away. Have a business name, have a business entity,” Castro said. “Maybe you have to learn bookkeeping, maybe you have to learn health insurance, learn about benefits. It can be frustrating and challenging but with those learning curves you get empowered and you keep going.”

During slow periods when less work is coming in, Perez recommended an emergency fund to ensure bills get paid.

For freelancers who are past the beginner stage and ready to level up, Castro suggested to start investing.

“Investing in things that will grow your money faster than your savings or checking account is the name of the game,” Castro said. “Start with one, figure out where your natural interest lies, focus on that investment category. Then commit to constantly learning.”

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The post What freelancers should know about navigating the gig economy appeared first on In The Know.

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Almost two fifths of gig economy workers get less than a week’s notice over shifts or work patterns




Close to two-fifths  of UK workers in full or part-time employment are given less than a week’s notice of their shifts or work patterns, according to new research conducted by the Living Wage Foundation. 

The research – based on two surveys, of over 2,000 UK adults in each case[1] – addresses a gap in the UK’s labour market data and understanding of hours insecurity, being the first recent study to assess notice periods for work schedules across the workforce.[2]

The study found that among the 59% of workers whose job involves variable hours or shift work, over three-fifths (62%) reported having less than a week’s notice of their work schedules. At the extreme, 12% of this group – amounting to 7% all working adults – had less than 24 hours’ notice.

While short notice periods affect workers throughout the UK, they are particularly common in London, where almost half (48%) of all workers received less than a week’s notice of work schedules. Scotland (35%), the South of England excluding London (34%), and the North of England (33%)  are areas where short notice periods were less common.

A second survey conducted by the Living Wage Foundation homed in on the experience of full-time, low-paid workers, finding that they were particularly hard hit by short notice of working hours. Of those working full time and paid below the real Living Wage of £10.85 in London and £9.50 in the rest of the UK, more than half (55%) had less than a week’s notice of work schedules, with 15% having less than 24 hours’ notice. Low-paid, full-time workers from Black, Asian and minority ethnic backgrounds[3] (68% of whom had less than a week’s notice of work patterns) and those with children (64%) were also disproportionately affected.

Laura Gardiner, Director, Living Wage Foundation, said:

“Without clear notice of shift patterns provided in good time, millions of workers have had to make impossible choices on childcare, transport and other important aspects of family life. Low-paid workers have been particularly hard hit during the pandemic, with millions struggling to plan their lives due to the double whammy of changing restrictions on economic activity and insufficient notice of work schedules from employers.

Despite this, and the challenges many employers have faced, some have stepped up during this crisis and committed to provide workers with secure, guaranteed hours and notice of shift patterns. These are the businesses that will help us rebuild and recover, and we encourage more employers to follow their example.”

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