COVID has called for drastic changes across companies nationwide over the past two months as operating costs continue while revenues have taken a blow due to the closure of nonessential businesses. Unfortunately, many companies were forced to furlough or terminate millions of employees, causing a rise in the US unemployment rate from 3.5% to 14.7% (the highest it has been since the 1940s). Small businesses have been particularly affected, as many fall in the “nonessential” category. Today, multiple remain closed, and those slowly opening are operating under unrealistic restrictions in which their expenses far exceed their potential earnings. These economic conditions are lowering their chances of survival significantly.
Employers are looking to cut down costs, making permanent jobs less attainable, even as businesses start to reopen, given high costs associated with salaries, insurance, and other employee benefits. That said, gig work has become a cost-effective alternative for many employers. Through gig work, small businesses can extend their staff without absorbing hiring costs. Once the company needs have been met, the company has no obligation to continue soliciting the independent contractor’s work. Similarly, if the company is not satisfied with the worker’s performance, the employer reserves the right to terminate the relationship with no severance pay obligations.
For millions of unemployed Americans, the idea of not having a steady flow of income can be unsettling; however, the gig economy has numerous perks. Benefits include independent contractor’s ability to work for various companies, which opens doors to more experience, schedule flexibility, and unlimited earnings. Unfortunately, COVID has taken such a negative toll on businesses that furloughs, for many companies could become definite. COVID’s economic effects, in a matter of only two to three months, have called for the end of many long-established businesses. For others, full recovery could prove to be a prolonged and arduous process. Nevertheless, this could be the beginning of a new start for those unemployed in the gig economy.
Whether you’re a Tax Professional in need of assistance managing your client’s work or looking for an additional income, Taxfyle may be an excellent fit for you. Taxfyle is composed of hundreds of vetted and licensed professionals ready to fulfill your firm’s needs. With just a few clicks, you can submit a request, and our platform will connect you to a professional that specializes in your tax needs.
On the other hand, Taxfyle serves as an opportunity for CPAs and EAs affected by today’s economic conditions to make some additional income by accepting jobs at their own pace. Feeling productive today? Accept and complete multiple jobs on the Taxfyle platform. Need a break? Take a couple of days to yourself and accept another job when you feel the time is right.
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