Demystifying Gig Worker Taxes: Classification, Reporting, and Penalties

Understanding Classification, Reporting, and Tax Implications for Gig Workers

In yesterday’s world, a gig was a performance by a musician or a comedian. But now it is seen as an income-earning activity from a variety of sources and not originating from one employer or source. Thus, it casts a wider net. This webinar by Anthony Curatola highlights the emerging gig economy in the United States and worldwide and the classification of gig workers as hobbyists, employees, or independent contractors. In addition, Tony will discuss the tax reporting issues associated with these workers.

To fully capture this revenue source, Treasury reintroduces Form 1099-NEC as a reporting tool for payments to independent contractors. In addition, Treasury introduces Form 1099-K for reporting of transactions via 3rd parties, which in many situations applies to gig transactions. In conclusion, the session will take a close look at the tax penalties associated with both the gig workers and tax preparers.

Webinar Objectives

The major issues addressed in this webinar include but are not limited to:

• The Gig Economy and the gig companies,
• The future of the gig economy after the pandemic,
• The advantages and disadvantages of a person earning income in this economy,
• The classification of gig workers (Hobbyist, Employee, or Independent Contractor),
• The income reporting requirements (Form 1099 MISC, Form 1099 NEC, or Form 1099-K),
• The issues surrounding the gig workers, and
• The tax penalties associated with the reporting income for both the gig worker and tax preparer.

Webinar Highlights

• An appreciation for the emerging world of gig workers,
• The classification of a gig worker (hobbyist, employee, or independent contractor),
• The complexity of income reporting by gig workers,
• The current rules for reporting gig worker income,
• The appropriate use of Forms 1099-MISSC, 1099-NEC, and 1099-K
• The tax penalties associated with a gig worker and a tax preparer.

Who Should Attend

Accountants, Tax Accountants, Tax Preparers, Enrolled Agents, Laywers, CFOs