Gig Work is Booming
The number of workers engaged in gig work is on the rise. Formerly known as working “freelance” or “on demand”, about 4 in 10 workers would prefer to work outside of a traditional, full-time 40-hour work week. According to a recent SHRM survey, 29% of all US workers performed some type of contingent work last year with the total spending on gig work a whopping $792 billion!!! What does this mean for you?
Don’t get us wrong, the gig economy has many benefits for workers and employers; such as flexibility, extra income, freedom to choose whom to employ or for whom one will work, and to fill a temporary staffing need, for example.
As this trend continues to gain traction, employers should prepare to do due diligence, make decisions about balancing innovation with stability, stay flexible and be open to change. However, it’s important to know the rules before hiring or classifying a potential employee as a contractor. There can be significant legal consequences for misclassifying employees which can result in back payroll taxes, legal penalties, interest and attorney’s fees.
HROIC’s Digital Independent Contractor Classification Tool
This tool walks Members through the process of accurately identifying the factors relevant to the determination of whether a worker is an independent contractor or employee for federal tax and/or wage-hour purposes. The tool provides clear explanations of applicable tests, the significance of each element of the business/worker relationship, and an easy to use digital form to document and record all pertinent data and assessments.
HROIC’s Membership Benefits
Not a member yet? Contact us at firstname.lastname@example.org right away to learn more!