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Let’s dig in.
1. Gig work maturing as high-earners surge
(From McLean Robbins for MBO Partners)
“High earners, the segment of full-time independents earning more than $100,000 annually, now totals 4.6 million workers, up 5% year over year and more than 53% since 2020.”
The independent workforce has surged, now comprising 45% of the U.S. workforce; as a business leader, adapting your strategies to integrate these professionals is critical to harness their preference for autonomy and the increasing enterprise demand.
With a 53% rise in high-earning ($100K+) independents since 2020, not actively attracting and retaining this segment risks your competitive edge in an evolving labor market.
Full story: Stronger Together: Independent Workforce Soars to 72.1 Million Americans
2. The problem with 1099 Tax Season
(From Gig Wage)
“Each tax season, you're not just dealing with your own end of year but also responsible for accurately reporting what you've paid your freelancers."
For business leaders, the stakes are high: Upgrading to a robust 1099 tax software can streamline operations, potentially saving substantial labor costs and mitigating error-related penalties.
Additionally, with the 1099-K reporting threshold drop to $600, non-compliance could mean facing up to hundreds of thousands of dollars in penalties for uncollected W-9s.
And a staggering tax withholding liability on payouts. For example: $1.5 million tax withholding liability on a $10 million turnover. All emphasizing the urgent need for meticulous financial management.
Learn more in our quick guide: The Challenges of 1099 Tax Season and How Gig Wage Can Help
3. Gig insights from across the pond
(From Pauline Kletti for Rollee)
“Gig workers are denied equal opportunity to financial services 💸"
Paris-based Rollee – the open finance API for income data – published the results of their annual survey regarding the financial exclusion of gig workers.
“The Gig Economy Equality Gap” reveals the concerns gig workers in the UK and France have and gives an overview of the financial exclusion they experience.
It’s a fascinating read. The gig economy is truly global. A different perspective is always wirth seeking out
Full story and download: The Gig Economy Equality Gap
4. Good Gig habits
(From Matt Franke for Motley Fool)
"When you become a gig worker or freelancer, it can seem intimidating to suddenly be responsible for your own tax withholding, retirement savings strategy, and health insurance. But as someone who has been doing it for a long time, I can tell you it becomes much easier as you get used to it."
For business leaders hiring gig talent, empathy for their broader financial responsibilities is important. Gig talent handle their own tax withholding and benefits, which can affect their job satisfaction and longevity with your company.
Leaders should be aware of the unique tax implications, like the self-employment tax and the necessity for gig workers to make quarterly tax payments.
Have you thought about providing resources or guidance? Retirement options like SEP-IRAs and Solo 401(k)s, and health savings accounts (HSAs) can be invaluable in supporting your gig workforce’s financial health and securing their loyalty.
Some great tips in this article.
Full story: 3 Financial Habits That Help Gig Workers Thrive
5. Steady as Gig goes
(From Steady)
"What sets Steady apart is not just their commitment to the mission of this program, but also their deep experience working with the gig and non-standard workers that we aim to serve," said Kristin Seefeldt, associate director of the University of Michigan's Poverty Solutions team.
Congrats to our friends at Steady.
Steady Impact has been chosen to oversee the GIG A2 program in Ann Arbor, providing guaranteed income to gig workers and leveraging their technology to track its effects on financial health.
With a track record of distributing over $115 million in cash assistance, Steady's platform is key in supporting and understanding the economic upliftment of non-standard workers.
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