The IRS recently launched its new Gig Economy Tax Center to help workers and businesses “meet their tax obligations through more streamlined information” [IR-2020-04, 1-9-20].
The gig economy, known as the sharing, on-demand, or access economy, includes businesses that operate an app or website to connect people to provide services to customers. Although the gig economy includes many types of businesses, the IRS said that ride-sharing and home rentals are two of the most popular.
“The IRS developed this online center to help taxpayers in this emerging segment of the economy,” IRS Commissioner Chuck Rettig said.
The IRS’s new Gig Economy Tax Center streamlines resources to make it easier “for taxpayers to find information about the tax implications for the companies that provide the services and the individuals who perform them.” The Gig Economy Tax Center has a link—Manage Taxes for a Digital Platform—that navigates to information on how to correctly classify workers as employees or independent contracts and to meet requirements for information reporting, tax withholding, filing, and depositing.
APA Resources
APA created a Compliance Hot Topic on the Gig Economy, which also features information about On-Demand Pay. The Hot Topic includes links to APA publications, federal resources from the U.S. Department of Labor and IRS, and education links.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.