The IRS defines the “gig economy” as people earning income providing on-demand work, services, or goods on either a part-time or full-time basis. The economic times we live in are changing and tax practitioners must learn how the rules apply in this new gig economy. The tax rules that apply to gig workers challenge traditional ideas of who is an employee and who is an independent contractor, and tax practitioners must have the knowledge to make this determination. This program addresses federal and state tax issues tax practitioners must address with clients and their own workers.
Learning Objectives
- Understand and advise clients regarding the new tax issues that have arisen as a result of the growth of the gig economy
Major Topics
- Characteristics of a gig economy
- Who is an employee and who is an independent contractor?
- Form 1099-NEC and reporting of non-employee compensation
- Reporting on Form 1099-K
- Gig workers and the requirement to pay self-employment tax throughout the year
- State tax implications of remote work for the business owner and workers
- How remote work creates state tax nexus
- Tax implications of employee telecommuting for the employer
- The “convenience of the employer” rule
- Drivers of both people and of meals or other products
- Section 199A deduction
- Implications of the Vizcaino case
