What does the passage of the new tax law mean for a gig economy increasingly characterized by a professional independent workforce?
A new provision allows sole proprietors, partnerships, and other pass-through entities to deduct 20 percent of their revenue from taxable income. Designed as a mechanism to fuel small business growth, some argue it’s little more than a tax shelter for wealthy individuals.
While the full impact remains to be seen, what is clear is that the provision incentivizes independent contracting as an alternative to traditional employment. But what does that mean for the workers seeking to capitalize on these tax savings? And how should employers prepare to acquire, classify, and manage talent under the new rules?
Neal Bhamre, Senior Vice President at TalentWave, explores the consequences of the new tax rules—both expected and unintended—on the independent workforce ecosystem.
You will learn:
Details of the tax law changes impacting pass-through and corporate entities
The arguments for and against the pass-through provision
Potential benefits and risks of the pass-through provision:
Independent contractor perspective
Third-party service provider prospective
How the tax plan may impact gig economy trends
Preparing for different talent acquisition and management models
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Driven by seismic changes in today’s workforce, unprecedented business change, and economic uncertainty, the world of work is changing rapidly.
Flexible workers (also known as independent contractors, freelancers, temps, SOW workers) are ...