The gig economy is here to stay: Here’s what it means for businesses

The gig economy now makes up 34% of the US workforce. Gone are the days when cubicles dominate workers’ worlds from 9 to 5 Mondays through Fridays. Independent contractors are more likely to do the bulk of their work from home or from Starbucks than from a cubicle or brick and mortar offices. Tax laws, employment laws, and freelance payroll are all evolving in response. Here are some of the main implications for businesses:

 

Smaller core staff

As independent contractors do more of the work for businesses, many companies are shifting towards smaller core staffs. While there are benefits to having workers under the same roof during the same hours, small businesses may benefit financially by being responsible for fewer full-time workers.

 

New legal considerations  

Freelance payroll is a different ballgame and one of its biggest considerations is worker classification. While it was once a fairly black and white issue, the subject grows more important and more challenging each day. This highly confusing topic also carries intense legal ramifications. The government is paying more attention than ever (see Uber and America’s pastime as prime examples) to making sure workers are classified correctly—and making someone pay when they aren’t.

 

The bottom line  

Subjects like payroll taxes, worker classification, and freelance payroll get more complicated by the day. Partners who help make sense of a tricky transition as big as this one are worth the investment. At PayReel, we manage all of the above and, as the employer of record, we even take on all risk associated with a variable workforce. Think you might benefit from hiring a payroll service? Here’s a handy guide to find out more.

 

About PayReel

Producing multimedia content and executing live events is chaotic. When it comes to event payroll, payroll taxes, and so much more, PayReel makes your life easier. We make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.

Relax. We got it.

 

How to navigate the increasingly dangerous waters of worker classification

Just as the stakes are getting higher, worker classification is getting trickier. The rise of the gig economy has led to an exponential increase in the number of independent contractors it brings into the labor pool each day. Lawmakers are taking note,  and the government ain’t playin’. Tax and employment law violations can lead to severe consequences. Employers shouldn’t play either. Here are some ways to tell the difference between an employee and an independent contractor and some questions worth asking before bringing an independent contractor on board.

 

How to tell independent contractors and employees apart

This is a meaty subject with a mountain of government legalese to back it up. Thankfully, employers can look at some of the main factors the government considers to sort out any areas of confusion, including the following:

  • The employer’s degree of control over the worker
  • The worker’s opportunity for profit or loss
  • The worker’s investment in facilities
  • How long-term the relationship is
  • The worker’s skill set

If you’re confused by gray areas, of which there are plenty, Upwork provides a simple IC v. employee compare-and-contrast chart that would make your high school English teacher proud. We also dive deeper and provide a handy cheat sheet and additional resources on the subject here.

But if you’re still uncertain, engaging a contractor management firm is your safest bet.

 

Questions to ask before hiring an independent contractor

1.  Am I confident I could make a strong case for the classification we chose?

If there is any question whether you’re on solid ground with your decision, you’re probably on very un-solid ground. It’s worth engaging support to make sure you get it right before it hits the courtroom.

 

2. What are the consequences if I get it wrong? 

Uber has provided über lessons on worker classification woes. It’s clear that the consequences can be steep and that the DOL is ready to drop the hammer on misclassification.

 

3. Do I need professional support and a built-in insurance plan to make sure I get it right? 

Navigating the dangerous waters and staying compliant is harder and more important than ever. Worker classification is one of those areas in which you can’t afford to take risks. Partners who make your life easier are worth the investment. A payroll service may be right for those who don’t have the bandwidth or interest in digging into the legalese. At PayReel, we manage payroll taxes and, as the employer of record, we even take on all risk associated with a variable workforce. Think you might benefit from hiring a payroll service? Here’s a handy guide to find out more.

 

About PayReel

When it comes to event payroll, payroll taxes, and so much more, PayReel makes your life easier. Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.

Relax. We got it.

 

Six reasons PayReel projects are better projects

Whether it’s a massive event or a one-camera shoot, when PayReel manages your projects, it’s the best for clients and workers alike. At PayReel, we’re devoted to making every single client and worker interaction a good one.

 

We make your life easy and your workers happy

 

1. We do it all.

Unlike the big guys, we handle events of any kind and any size, whether you’re payrolling thousands of workers or sending a one-person crew to film an NBA game.

 

2. We’re here. We even answer the phone.

Events don’t operate on a nine-to-five schedule and neither do we. We have an after-hours phone so we can be sure to provide speedy answers.

 

3. We’re paperless.

Not having to sift through piles of identical paperwork cluttering up your desk and your headspace makes the process quicker and easier for you and for your workers.

 

4. We offer speedy payment.

Workers submit timecards on Mondays and we pay them on Fridays. When they’re paid quickly, workers won’t be calling your office, which frees you up to do your job better. Of course, it also keeps workers happy so they are free to focus on your project and happy to come back for your next event.

 

5. We keep workers happy.

Speaking of keeping workers happy, the last thing you need once you’ve hired workers is to lose their loyalty on the back-end details. Whether they’re working for one day or for a month, we make sure workers get paid quickly and accurately so if you want to use them again, they’ll be ready to pick up the call.

As Michael, one of the freelancers PayReel pays, said, “Natalie ( on of our PayReel Customer Experience Manager) has been superb in addressing whatever problems I have had.”

 

6. We make event payroll as easy as 1, 2, 3, w-4.

By managing all the payment details, including the mountains of W-4s, we make event payroll a non-event.

 

The bottom line

You work with us because we make your life easier. Why not use us for all your events and workers? Not only does our team manage event payroll and payroll taxes; as the employer of record, we even take on all risk associated with a variable workforce. Think you might benefit from hiring a payroll service? Here’s a handy guide to find out more.

 

About PayReel

When it comes to event payroll, payroll taxes, and so much more, PayReel makes your life easier. Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave all payroll services and details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.

Relax. We got it.