IRS introduces Gig Economy Tax Center.
The Internal Revenue Service announced the launch of the Gig Economy Tax Center on its IRS.gov website to provide tax information to businesses that operate an application or website to provide services to customers. The site is intended to make it easier for taxpayers to find information about the tax implications for the companies that provide the services and the individuals who perform them. The center links to additional information regarding independent contractor classification regulations as well as guidance on information reporting and self-employment tax withholding. Previously, the IRS approach to independent contractor classification has focused on audits and punitive actions against companies that misclassify workers.
The rapid growth in gig workers, particularly those conducting cloud platform work, has brought increased complexities in determining proper classification. While some gig workers do not receive a 1099 wage form, all are responsible for taxes. nextSource compliance specialists can provide a full range of compliance services to companies at risk of misclassification. Contact us for assistance in Independent Contractor risk analysis, evaluation and validation, management, and – if needed – transition to nextSource as a payrolled employee.
To learn more contact us at firstname.lastname@example.org.