The US seems to have it for concert workers and those who use them.
California-Fifth largest economy in the world-has significantly reduced the ability of companies located there to hire independent and independent contractors instead of employees. The US Department of Labor has issued up -to -date rules that address workers’ classifications, which have forced more companies to reclassify their independent contractors as employees in order to comply. The new rules from the Internal Income Service will now require that payment processing firms offer additional reports on payments made to 1099 forms, the document commonly used to report a freelancer’s income.
The latest attack against concert workers comes from IRS. Last December, a federal court allowed the agency to go after a digital platform called Justanswers, which pays independent doctors, lawyers and other fees of professionals as independent contractors for their expert services in “Information Request . ”
“The concert economy has increased in recent years and, with it, concern about tax compliance issues has increased,” said David Hubbert, Deputy Prosecutor of the Prosecutor General of the Department of Justice Tax Division in a public statement. “We will use all the means available for us to ensure that no matter how US taxpayers earn income, they are reporting properly and paying their taxes. Those who choose to be at the forefront of economy Concerts must be aware and respect all their tax liabilities. “
Some have wondered: Why all rage? Why go after these small concert workers instead of billionaire tax dodgers? As one writer points out.
There is no argument that the concert economy has grown dramatically, especially since the pandemia. More than 20 million new businesses have begun since 2020, most of those who represent side -fuel, independent contractors and freeber. According to reports reported in Forbes, about 64 million Americans, representing 38% of the US workforce, did independent work in 2023, which increased by 4 million people a year earlier, and contributed almost 1.3tn Dollars in Annual Profits for SH.BA Economy
Are IRS afraid of losing tax revenue? As a business owner, I do not pay employer’s taxes when I hire freelancer independently. But freelacer is responsible for paying a “self-employment” tax when they submit their tax declarations, so if they are doing what they have to do, there should be no difference. Most states have similar tax arrangements. If a taxpayer fails to report those profits, then this is on them. They are violating the law and endangering sentences or even prison.
Some have blamed the great union lobby, which has forced the hand of state lawmakers and federal to adopt new rules that force companies to reclassize more independently as workers in order to make them acceptable for union membership. Supporters of this tactic say they are enabling independent workers to receive all the rights, protections and privileges of an employee, as well as desired benefits such as health insurance and pension plans.
I take it and let’s be honest. Most business owners I know – including myself – prefer to use freelarder compared to employee employment. Why? Because we are able to hire and ignite them while please and do not need to worry about things such as health care, pension, unemployment provision, workers’ compensation, paid rest and all responsibilities of others who come with having employees. If one of my contractors is not doing a good job, I just stop using them. This is not that easy when you have employees. Do not make a mistake – Freelander have less workplace protection.
But this is a two -way road. Most independently independent I know and work with them as their independence. Independent Union-which protects the rights and protection for the independent community-has reported that although freelacer “feel concerned about everything they have to manage, they also have a better job and life balance with more control over destiny their and the schedule, resulting in less stress and better health “and that” independently gives them the necessary flexibility because they are unable to work for a traditional employer because of personal circumstances, such as health issues or needs of child care. ”
Then why all fuss for freelacer? Why do governments have such a problem up to their tails for them?
It’s about control.
When employees are on a company’s salary list, their information is easily collected and reported to the government. And if the reporting is not done properly – or at all – the government has an easier objective to proceed further: the employer. Most employers do not want the cost or pain of duty to deal with a government investigation so that they can respect. And all their service providers – accountants, salary companies and insurance firms – are happy to provide easily with any information the government needs to ensure that taxes are being collected and the rules are being followed instead of losing their license for operated.
But now there are 64 million freelancers there and there is no way that IRS or Labor Department can follow their activities. These government agencies can pass all the rules and laws they wish. They can make examples of larger offenders. They can issue public statements and press releases to warn, threaten and scare sellers, artists, programmers, graphic designers and Etsy photographers to make sure they pay their taxes or else!
But government officials do not want to accept the truth, which is the government is simply unable to control this mass group.