HRMT413 Week 1 Discussion

HRMT413 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?

Based on my previous experience in the arena of employment, and revalidated by this weeks readings, the biggest differences between an employee and an independent contractor are the benefits provided to or exempt from, and the ability to accept or turn down (reasonable) request for particular jobs or tasks within ones skill set and position description. Independent contractors at large have a lot more latitude in the aspect of what jobs or tasks they accept or deny, albeit with the

potential repercussions for doing so.

Prior to this course and the “readings” this week, my perception was that gig work is a vital part of the working infrastructure that spans the gamut from hobbyists and amateurs to professionals and experts in their field. There are so many niche skills that are either lengthy to master, complex, rare (and therefore hard to find education/apprenticeship), short duration, rarely needed in certain contexts, or a combination therein. As such, I believe that the gig economy will only be bolstered as individuals follow their skills and passions to make a living, and contribute to society at large.

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.

References

(1) https://www.businessnewsdaily.com/15853-independent-contractor-employee-differences.html#:~:text=Key%20takeaway%3A%20Independent%20contractors%20are%20not%20employed%20by%20the%20company,hired%20for%20one%20specific%20project.