Do you consider a 1099 Worker a Business or an Employee? Are you engaging in a business to business agreement or are you using 1099 as another option for workers to be paid?
KDragonfly recently attended a jobs summit in which workers were addressed as employees in W-2 jobs. There was no mention of where the 1099 Workforce in the reporting at all. Forbes just recently put an article out titled “Forget The Jobs Report — Focus On the Freelance Economy” which comments about the DOL Bureau of Labor Statistics Report “While the job report is picked over by everyone (before it is revised two months later), there is one statistic that I believe is even more indicative of the current and future job market—the state of the freelance market. The number of freelance workers is projected to outpace full-time workers by 2020. The economy is rapidly shifting to a more contingent workforce, with recent estimates by the Freelancers Union of 42 million American independent workers, up from 10.3 million workers in 2005.”
It goes onto state that the Department of Labor has access to this data. We look forward to reporting from the centralized repository for data on the freelance marketplace. Soon this data will also become available and reveal an entirely unreported sector of the workforce.
What will the DOL and IRS do with this information? Will they use it for audits or triggers for the IRS to try to perform compliance checks? Will they incorporate it into the jobs reports and revise their reporting of the underemployed? How will this impact your business’ unemployment rates? How will this impact your workers’ compensation rates? Will it effect them at all? All of these questions have yet to be answered and addressed because the data is not measured or explored. Will it benefit small business….large business…..any business???? We look forward to the unraveling of this Focus on the Freelance Economyand a positive business sector impact. It’s a New Way to Work and we all know it.
Send us your comments, thoughts, wishes and woes and we’ll create topics to discuss focused on your ideas. www.kdragonfly.com