The perennial question has reared its head and it was just a matter of time given the burgeoning gig economy. The new working arrangements provide flexibility for workers, arrangers and customers.
It is critical that any business, not just gig economy businesses engaging independent contractors, understand the issues and take all steps to ensure that their business model works; otherwise, the consequences can be catastrophic.
The changing working arrangements have put a spotlight on the traditional dichotomy between an independent contractor and an employee. The new arrangements suggest a further category, as yet undefined, that has characteristics of both.
But what are the tax and other economic implications for those involved?