What is the Gig Economy?
The gig economy is a new kind of job market.
Gig workers are characterized by engaging in earning money outside of a traditional employer-employee relationship. While the trend comes with a great deal of diversity in definition and legal classifications, overall, these workers enjoy self-employed typically on a temporary basis.
Much of this work is project-based and related to a specific initiative. Many of the rules and regulations from a tax standpoint are different for gig workers than for traditional employees. The nature of work in which these contractors engage often independent and internally-driven. While the relationship with their employer looks different than a traditional employee-employer relationship, the gig worker is still responsible for maintaining open communication and problem-solving abilities to accomplish the task at hand.
Keep in mind that the definition of a gig worker can vary greatly. While descriptions of independent contractors, on-call workers, temporary agency help and contract firm workers all have similarities, it’s important to remember that information regarding this type of economy may not be speaking universally of the same type of worker. While terms are often used interchangeably, as in this article, it’s worth remembering the variances as well.