In the aftermath of the economic collapse in 2008, there has been increasing reliance among employers on “non-regular” workers.
This growing army includes freelancers, temps, contractors, part-timers, day laborers, micro-entrepreneurs, gig-preneurs, solo-preneurs, contingent labor, perma-lancers and perma-temps.
It’s practically a new taxonomy for a workforce that has become segmented into a dizzying assortment of labor categories.
It is also a significant factor in the decline of the quality of jobs in the United States, as well as in Europe, since 2008. Even many full-time, professional jobs and occupations are experiencing this precarious shift.
This practice has given rise to the term “1099 economy” in the United States. Under the U.S. tax system, these employees don’t file W-2 income tax forms as a regular, permanent employee. Instead, they receive the 1099-MISC form for an IRS classification known as “independent contractor.”
The advantage for a business of using 1099 workers over W-2 wage-earners is obvious: An employer usually can lower its labor costs dramatically, often by 30% or more.
It is not responsible for a 1099 worker’s health benefits, retirement, unemployment or injured workers compensation, lunch breaks, overtime, disability or paid sick, holiday or vacation leave, and more.
Read more: The Sharing-the-Crumbs Economy - The Globalist
This growing army includes freelancers, temps, contractors, part-timers, day laborers, micro-entrepreneurs, gig-preneurs, solo-preneurs, contingent labor, perma-lancers and perma-temps.
It’s practically a new taxonomy for a workforce that has become segmented into a dizzying assortment of labor categories.
It is also a significant factor in the decline of the quality of jobs in the United States, as well as in Europe, since 2008. Even many full-time, professional jobs and occupations are experiencing this precarious shift.
This practice has given rise to the term “1099 economy” in the United States. Under the U.S. tax system, these employees don’t file W-2 income tax forms as a regular, permanent employee. Instead, they receive the 1099-MISC form for an IRS classification known as “independent contractor.”
The advantage for a business of using 1099 workers over W-2 wage-earners is obvious: An employer usually can lower its labor costs dramatically, often by 30% or more.
It is not responsible for a 1099 worker’s health benefits, retirement, unemployment or injured workers compensation, lunch breaks, overtime, disability or paid sick, holiday or vacation leave, and more.
Read more: The Sharing-the-Crumbs Economy - The Globalist
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