The gig economy now makes up 34% of the US workforce. Gone are the days when cubicles dominate workers’ worlds from 9 to 5 Mondays through Fridays. Independent contractors are more likely to do the bulk of their work from home or from Starbucks than from a cubicle or brick and mortar offices. Tax laws, employment laws, and freelance payroll are all evolving in response. Here are some of the main implications for businesses:
Smaller core staff
As independent contractors do more of the work for businesses, many companies are shifting towards smaller core staffs. While there are benefits to having workers under the same roof during the same hours, small businesses may benefit financially by being responsible for fewer full-time workers.
New legal considerations
Freelance payroll is a different ballgame and one of its biggest considerations is worker classification. While it was once a fairly black and white issue, the subject grows more important and more challenging each day. This highly confusing topic also carries intense legal ramifications. The government is paying more attention than ever (see Uber and America’s pastime as prime examples) to making sure workers are classified correctly—and making someone pay when they aren’t.
The bottom line
Subjects like payroll taxes, worker classification, and freelance payroll get more complicated by the day. Partners who help make sense of a tricky transition as big as this one are worth the investment. At PayReel, we manage all of the above and, as the employer of record, we even take on all risk associated with a variable workforce. Think you might benefit from hiring a payroll service? Here’s a handy guide to find out more.
About PayReel
Producing multimedia content and executing live events is chaotic. When it comes to event payroll, payroll taxes, and so much more, PayReel makes your life easier. We make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.
Relax. We got it.
