HRMT413 Employment and Labor Relations, Week 1 Discussion
1. Explain the difference between an employee and an independent contractor.
2. Share your views on the pros and cons of "gig work" as discussed in the reading and podcast. In your informed opinion, what is driving the push toward the "gig economy"? Do you think these types of employment arrangements will continue to grow in popularity? Why or why not?
The difference between an employee and an independent contractor are simple and it all revolves around taxes and money. An employee is hired on a mutual agreement of how, when, what to perform a service; this includes how much the employee is paid including taking out the appropriate amount of taxes. An independent contractor and another company come to an agreement for a service to be performed, the independent contractor performs service and provides a detailed involve to the company who then pays. It is then on that independent contractor to pay the self-employee tax. (1)
Currently, I think the forward of the “gig work” economy is because of the pandemic. There are lot of people who are bored at home and have figured out how to make soap or product they can ship around the country. I do not think this type of work or economy is sustainable for extended periods of time, especially with the undesirable inflation the current administration has brought.