I'm also worried about what this will do to the plumbing company I use for our business. If there's no exception for small businesses, I'm going to have to turn myself back into an employee and waste a lot of time dealing with all the additional paperwork. It's a little extra work on my 1040, but minimal compared to other complications like owning a home. Instead of having to deal with all of the above every month, I just make 4 self-employment tax payments a year, and file a 1099 at the end of the year. Got my own insurance, and simply cut a check for myself each month. I eliminated it all by making myself a contractor. But for me alone it was a needless amount of extra work. If the company had had multiple employees I could amortize these costs over, then it might have been worth it. All that literally amounted to 25% of my workload.
#GIGECONOMY FUCK YEAH UPDATE#
But when I originally paid myself as an employee, I had to update tax rates and unemployment/workers comp insurance rates to the accounting software each year, file taxes every month (companies have to make tax withholdings payments each month), making workers comp payments, preparing paperwork for workers comp audits, appealing workers comp audits (they kept trying to reclassify me as a handyman who physically fixes things, even though all I do is accounting paperwork), etc. I am literally the only person running this company. If not, I'm going to have to convert myself from contractor back to an employee for my dad's business that I run.
.jpg "gigeconomy fuck yeah")
I need to go and read through the text of the law now to see if there's an exception for smaller businesses.
But a blanket restriction against contracting like this is too broad and will lead to inefficiency. I can support social safety nets, and payment floors (like a minimum wage).
#GIGECONOMY FUCK YEAH DRIVERS#
I'd put some good money that a very large percent of Uber and Lyft drivers aren't paying all of their taxes.īut my business plan RELIES on me being able to make my desperate employees work for free. And you'll have to figure all of those out, since Uber won't do it for you. Hopefully you've also put some money into your retirement fund. When tax time comes, you're going to have to pay state, local, and federal taxes, along with social security and medicare/medicade. If you haven't been saving up specifically for this sort of thing, that's going to suck.ģ) Taxes. At some point some major repairs are going to pop up, and while those happen you're not making money. But because you're not a business, you can't write off the depreciation on your taxes. At first it will be fine, especially if it's new. The longer you drive, the worse condition your car will get in, and it will do that fast. Taxi work is going to take years off of your car's life. If you're putting a lot of hours on the road, late nights, in city traffic, you're going to be far more likely to find this out the longer you drive.Ģ) Depreciation and repairs. So if you get into an accident on the way to pick someone up, neither insurance will cover that. According to most private insurance, if you're even remotely engaged in for-hire driving, you're not covered. But you're only on the clock when there's a passenger in the vehicle, according to their rules. Uber offers insurance when you're on the clock. Your private car insurance doesn't cover using your car for-hire. There are about three major pitfalls that are not readily apparent:ġ) Insurance. In a statement, Newsom called the bill "landmark legislation," and said that, "A next step is creating pathways for more workers to form a union, collectively bargain to earn more, and have a stronger voice at work - all while preserving flexibility and innovation." Lorena Gonzalez, the state assemblywoman who authored the bill, said in a statement that, "California is now setting the global standard for worker protections for other states and countries to follow." Further reading: Drivers? Never Heard of Them, Says Uber. While the legislature has adjourned until next year, fierce lobbying and deal-making efforts are expected to continue in the meantime, and could potentially yield separate legislation in 2020. The bill is slated to go into effect on Jan. It could upend the business models of companies that depend on armies of independent contractors, who aren't guaranteed employment protections like minimum wage and overtime. The law codifies a 2018 state supreme court ruling, and applies it to a wide range of state laws. From a report: The hotly contested legislation, Assembly Bill 5, dictates that workers can generally only be considered contractors if they are doing work that is outside the usual course of a company's business. California Governor Gavin Newsom signed a sweeping new law that could force gig companies like Uber and Lyft to reclassify their workers as employees.
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