Independent Worker in the Gig Economy

, Independent Worker in the Gig Economy, Hyer

OVERVIEW

An independent contractor is a person, business, orcorporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to law of agency. Independent contractors are usually paid on a freelance basis.

 

BENEFITS

  • Work on your terms
  • Flexibility
  • Extensive opportunities – tasks for commercial and residential needs
  • Expanded profile / skill-set and career-building potential

RESPONSIBILITIES

  • Taxes – Sole responsibility for filing all tax returns
  • Insurances – Health, Accident, Unemployment, Workers Compensation

TAX CONSIDERATIONS

In the United States, any company or organization engaged in a trade or business that pays more than $600 to an independent contractor in one year is required to report this to the Internal Revenue Service (IRS) as well as to the contractor, using Form 1099-MISC. This form is merely a report of the money paid; independent contractors do not have income taxes withheld like regular employees.

IRS Reference: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

INSURANCE CONSIDERATIONS

The good news is that there are insurance companies (like Stride) that cater specifically to the needs of the gig economy worker, offering health and accident insurance plans at affordable prices. Please visit https://www.stridehealth.com/ for details.