Gig Economy

Personal Finance

The gig economy is the labor market made up of short-term, freelance, and contract work — typically facilitated by platforms like Uber, DoorDash, Upwork, Fiverr, and TaskRabbit. Gig workers receive 1099-NEC instead of W-2, meaning no withholding, no employer-provided benefits, and full responsibility for self-employment tax (15.3%). The trade-off is flexibility: choose your hours, scale up or down, and stack multiple gigs. Smart gig workers set aside 25-30% of gross income for taxes, deduct legitimate expenses (mileage, home office, equipment), and contribute to a Solo 401(k) or SEP-IRA to reduce taxable income.