FORT LAUDERDALE – There is a major paradigm shift in the job marketplace this year where more Americans have been seen migrating to the status of independent contractors or temporary worker to supplement their income. The Federal Government has difficulty reporting the number of gig workers so it’s hard to comprehend the actual growth and their impact on the job economy. According to a recent New York Times article, “over the past 20 years, the number of gig economy workers has increased 27% more than payroll employees and industries such as transportation and traveler accommodations has seen a 44% increase in the number of gig economy workers than payroll employees”.
Companies like Uber, Lyft and InstaCart are changing the landscape of so-called conventional employment – working often through apps, earning daily payouts of their earnings and utilizing apps such as TripLog to document real-time tax deductions for federal filing of their income tax returns. As payment solutions such as push-to-debit, Venmo and other platforms become more seamlessly integrated into our everyday lives, more Americans are finding it easy to migrate to independent contractor “gig” economy opportunities for guaranteed pay structures and instant supplementation of their income.
There are several theories that experts are sticking to when it comes to understanding the paradigm shift from nonemployer firms to gig economy contractor and temporary worker opportunities. First, there is a disparity in income growth and the cost of affordable housing in states such as California, Texas and New York. In these states, residents are paying a higher percentage of their income in rent. Also, the cost of health care premiums for a family of four has escalated in recent years and an individual’s relationship with employment has been further redefined by heightened anxiety about being able to afford rising healthcare premiums.
According to the Brookings Institution, a think tank for government policy, cities in the State of California such as San Francisco, San Jose and Los Angeles have reported a 100% increase in workers migrating to nonemployer “independent contractor” status income opportunities to supplement their income. Some economists believe that companies are using loopholes in the tax code to cut back on payroll employement to lessen their tax burden and increase profitability.
Two of the most famous gig economy companies, Uber and Airbnb fall into the category of ground transportation and traveler accommodation where the highest increase in nonemployer and temporary worker job opportunities is documented.
This is food for thought. Is there reasonable proof to suggest that if gig economy jobs were factored into the job reports, the unemployment figure would actually be lower and the Federal Reserve would have reasonable evidence to suggest that the economy is more stable and thereby justify an interest rate hike? What are in the implications of such inclusion?
One of the best ways to profit from the rising tide of gig economy opportunities is to use apps such as TripLog to document tax deductions that lower your federal income tax. Many gig economy workers are profiting from “keeping their Day Jobs” and working 15 – 20 hours a week with gig economy companies such as Uber, Lyft, Postmates and Instacart and pocketing significant tax refunds by documenting 1099 mileage and other expenses traditionally out of reach for payroll employees. You can maximize their potential tax savings of these deduction, they are “keeping their Day Jobs” and incorporating as a LLC or S-Corp to limit their personal liability exposure as a side hustle “gig” economy worker. It is highly recommended that you consult with a professional tax consultant to explore an LLC or S-Corp for their passive income rollover benefits.
With tens of millions of Americans involved in some form of temping, contracting or freelancing and increased reliance on apps to outsource gigs, the landscape of employment in the United States will continue to be influenced by the rise in gig economy jobs. More and more Americans are worried that their working hours will be cut back and wages reduced. As the apps become more powerful and our smartphones become more integrated into our everyday lives, more Americans will migrate to gig economy opportunities to maximize their income earning potential.
If you are interesting in learning more about how to profit from the side hustle “gig” economy, you should read this article, “How to Invest Your Side Hustle Income to Buy a Home in 5 Years!”.
VIP Success Inner Circle: The Manifestation Miracle. It’s time for you to experience the Power of Destiny Tuning to help you manifest your God given talent and achieve amazing results in your Life. Learn how the elite 1% tune into their Mind Potential and Energy Dynamics and Creativity to build financial freedom and prosperity. Discover for yourself the Manifestation Miracle!