Embrace the Flexibility but Prepare for the Uncertainties

With the rise of companies like Uber and Lyft, the gig economy has gained popularity. Gig work offers freedom and flexibility similar to freelancing – you get to choose your hours, workload, and the type of work you want to do. However, it’s essential to recognize that the gig economy is still relatively new and evolving. While the independence may seem appealing, there are challenges that gig workers encounter due to the existing employment system.

Gig workers are often classified as independent contractors, which means they work for multiple companies or apps simultaneously. This diversity in income sources can complicate tax reporting and make it challenging to track earnings accurately. Consequently, tax season becomes more complicated and stressful for gig workers.

Although the CARES Act extended unemployment benefits to many gig workers, accessing these benefits can still be a cumbersome process. The lack of structured support systems and the prevalence of bureaucratic obstacles mean that some gig workers may struggle to receive the financial assistance they need, especially during unpredictable times like the current pandemic. Moreover, gig workers face difficulties in obtaining other federal benefits, such as Medicaid, further underscoring the financial insecurities they may encounter.

Gig work offers a unique and liberating way to earn a living, but the existing societal structures have not fully adapted to support individuals engaged in this form of employment. Before committing to gig work, it’s crucial to understand and prepare for the challenges that come with this mode of employment.