Read on: Gig jobs, Coworking Space, And Retirees in 2019
PRESENTED BY YOUR ONLINE PAY STUB MAKER 07-5-2019
This article topic has a personal touch. I was working online for a few years, with some Chinese suppliers from my home buying office. In the last two years, I wire this blog from my home desk.
The number of people working on a Gig job, or working from home, or out of the employer’s workplace is growing every day. Workers as a freelancer are spreading fast between writers, Software developers, and any other work that can be done with a computer and Internet connection.
One new industry creates another one; the coworking space was made for those who want to work near home but not at home. Those modern concept workplaces were created for startups of small groups, and lone workers. A place for a gig desk worker needs to have a complete service of space, and all the infrastructure that they may have at home but without the kids jumping on their keyboard.
What are a Gig job and the gig economy
For the workers that use the most versatile tools invented, the computers with the Internet, there is not much difference where are their working station. A person that is operating an online PC can be anywhere in the world with an Internet connection. Some gig jobs are done outside of an office, Uber drivers and food delivery are good samples for non-office gig jobs. Watch a video on the coworking space business model
The term gig
The term gig started as a slang word for a live musical show. Coined by jazz musicians in the year 1920. The word is short for the word “engagement.” The public took the term as a name for a work done with no employment as we know it, working eight hours a day or 40 hours a week in the same workplace.
The gig economy is a 21st-century style of making a living. The internet became available almost everywhere and faster than its launch at the end of the last century; it is growing every day. Great Recession in 2008 raised the number of people working as a gig worker. Video on: About Coworking Space
Who works as an office gig?
A gig worker can be any worker who works as an independent contractor. It can be online or offline, can be full-time or part-time for occasional projects or continuous projects. It can be the person’s principal or supplemental income. Gig worker can hold a traditional full-time salary job as well as a Gig job. The MBO survey tells us that 41.8 million people are taking independent work at least monthly, A 1.8 million more than in 2017 up from 40.9 million in 2017. This number represents 26.9 percent of employed workers.
McKinsey Global Institute conducted in its online surveys that the national workforce has between 25 and 30 percent of the workers had engaged in gig work on a supplementary or primary basis per month.
The different surveys have different definitions on the term gig work. That brings some difference in the result of the studies. Consideration of different time frames and the surveying of different types of populations brings the differences in the survey’s findings. Government analysis of General Social Survey made the most significant estimates of gig industry jobs available — 40 percent of the workforce. That includes the regular part-time jobs that do go to work in the employer’s workplace.
How are gig workers paid?
Computers and the Internet made possible the gig economy. Read this article The rise of freelance and contracting work. It is natural that most of the people that work in the gig economy strongly support the electronic payment.
According to July 2018 survey conducted by digital payment service Bill.com. Of 1400 US freelancers and contractors close to 86% of the surveyed people said that they prefer a digital paycheck from their employers. Some 41% of surveyed gig workers prefer an even more secure way to be paid. They required digital payment before taking on a gig.
The payment problem
A Gallup poll from August 2018 found that 57 million Americans are taking part in the gig economy. A big part of the respondents said that “getting paid” is a significant issue in this growing segment of the economy.
How gig workers make a pay stub and pay taxes(tax)
If you are a self-employed or an independent contractor, working as a gig worker. You have to pay taxes directly and not by the employer withholding the deduction for taxes and FICA – Medicare and the FICA – Social Security. As a self-employed that works for his or her corporation, you will have to manage payroll. Make your paycheck and deduct your withholdings. An easy way to make your pay stub would go online Pay stub online
You can read more about paying your tax here. Bellow, you brought you a short quote from this article.
Tax Return, Your Possible Deductions
The IRS treats an independent contractor more like a business than as an employee. If you are a contractor, you have to act like a mini business. As a business, you have to see what was your revenue, and after that, you have to deduct the costs that are related to your work and get the year net income after. You pay tax on what you gained for the tax year you are reporting. Employees get it all on the pay stub and have no annual tax return. Contractors will have the car mileage and other deductions that are their cost of production.
The Deduction of Home Office Costs
If you are an independent contractor. You have a separate space at home or rent a cubicle in a shared space office. You should deduct the cost of it from your gross income. You have to be a writer or programmer that works on a computer or other type of contractor that uses office, to justify the home office. If you work out of home, you may have the millage of the vehicle and other materials as a cost of your production.
Where is the gig worker workplace?
You just started to work as a freelancer, and You do not know where the best place to sit in front of a desk and work is? You can work at home from your office desk, maybe at the nearest cafe or on your couch in your living room.
The two most often chosen options by freelance gigs are a dedicated home office and a coworking space. Now we will see which one will be best for you.
Below are some of the pros and cons of each of both options for freelance workspaces.
Working From Your Home Office
Crossing to the next room where you have your desk and ergonomic chair. It is your territory, sound good, but there are some disadvantages
Home, pros, and cons
You Can Create the Workspace as your dreams And keep the Routine That Suits You.
You are at your home; you control what equipment you are going to have, what time you are going to work and when you are going to stop for rest, food, or family time.
I would work at the very early hour of a new day, or whenever you fill that you have the right mood. You can have a chair and desk that you like better. You build your schedule of work rest family time like taking a weekday off and work on the weekend.
It Can Help You Cut Down On Costs.
Your home office will need a small investment, A good computer, printer an external hard disk and some office stationery will do for the equipment. Chair and desk may be the main furniture. All these are deductible from your tax.
You will not need for commuting, and you will save time on the rush hours and money on bus or car. Food and clothing costs
Once you are at home, you can eat homemade food that will be much cheaper and healthier. Dress at home can be a pair of jeans and a T-sheat while going out to a coworking place will need better and more expensive clothing.
Working at home as a freelancer will let you have your time managed as you like, you could take a break during the day and work early in the morning or at night. You are not tied to the work schedule of a traditional job. If you take a coworking space you can do the same as you do when you work at home, you can pay for 24/7 space and come and go whenever you want.
Working from home or a coworking space will let you take classes at any part of your day. Pick up your kids from school, or going to the dentist without the need of asking for permission from your employer’s HR manager.
You Need Some Self-Discipline To Work At Home.
As a freelancer, I am on my own; it is me who has to be accountable for my work. It is not easy to stay concentrated on the job, keep writing under the instructions that can occur at home. My wife and kids will keep contacting me at home, stopping the flow of writing or cutting my train of thought. Working at a coworking space will maintain your independence to join your family without suffering from their interactions.
As a gig worker, working at home or the coworking space you will need to avoid staying on youtube for “just one more video” on the last football game. As an employee working in the workplace of your employer, you will have no options for wasting your time like working at home. A coworking space will have more of a working atmosphere, no temptation, and no interruption. A coworking space will have a cost for its rent, which is a negative factor if you compare it with using your home space for your gig job. Working at home, you will need to have strong self-discipline trait.
Coworking Space And the Gig worker
A coworking space is a place that people like gig workers can rent as their workplace. A coworking space is built like an office with many work stations in the same area. The freelancers’ renters share that. It will have some complete offices and conference room too; those will be used by some people that work together on a startup or other joint activity. Working stations and bigger units can be rented by hours, day, or months. Coworking spaces are trendy these days, and their popularity is growing every day.
As it is a relatively new offer in the market for working places, especially for the raising gig economy, we will take a look at its pros and cons.
Using a Coworking Space as Your Workplace Will Create a Routine.
Writing or designing are activities that need a high level of concentration and a routine of working and taking a short break. You can set your routine at your home office. If you need some help or want someone to give you his or her opinion, a coworking space may be something you would enjoy.
Using a coworking space for your work as a freelancer will take you out of your home, just like regular employment. You still will have to “go to work,” but you will have no boss looking after your work or worst, micromanaging you. You yet will have to get up, get dressed, and take a bus to your workplace. You are the one the put the rules for the routine that may be spread on 24/7 base if your rental agreement permits it.
There’s A Social Aspect And A Sense Of Community.
Working at home keeps you alone and somewhat isolated from other people that are working in the same industry. At home, you will have an interaction with other writers. You are stuck with your clients’ contacts or your internet connections. Get along with other gig workers may be an excellent reason to get yourself a place in a coworking space.
At the coworking space, you work as you want, you are your only boss. You are not alone. There are other gig workers like you, and there is someone to meet on the coffee machine. Having more people like you in the workplace can bring into new ventures to build some good friendships. There will be some sense of a community between the people that work as freelancers in different phases of the gig economy, and you can find things to share with the other coworker
A coworking space will naturally create a sense of community between the people that work there. Most of the people that work in places like this will have common grounds like freelancers writing blogs, programmers creating applications or other online occupations. Having close fields of interest will foster a community vibe through the individuality of each one work.
Networking Will Sprout in a Coworking Space Culture.
Networking is essential for freelancers career. Through the network will come new jobs, projects, and connections that will spread your name and get you a better credit as a freelancer in your field. Working at home will make it difficult to happen.
Working at home will condemn you to a solitary professional life while working in a coworking space will open for you the world of gig online life. Mixing and mingling with your fellow freelancers’ writers or programmer will let your network grow and bring you more and better job opportunities.
The Distractions In A Coworking Space.
Distractions are everywhere. It will come from your mind if you are not 100% engaged in your goals. You will be distracted by the youtube on your computer or by one of the other coworking people. At home, you may have another type of distractions than at the rented cubicle in the coworking space. A work station with other people will be a place to be losing the concentration if you let it happened.
You will have some neighbors to your desk that might what to chat with you more than you are interested. There will some noisy people there (The use of headphones with soft music may help you) Having lunches can take your time too. The network creating we were talking about as an advantage will cost you some time to build by conversing with the people.
Why Do the Older people Participate in the Gig Economy?
As of May 2017, the Census Bureau of the USA counted the retirees living in the US close to 48 million seniors aged 65 and up. They are making close to 15 percent of the total US population. For the year 2035, it is expected to rise to 78 million. Those retirees are known as the baby boomers generation.
Read this New York Time article about The Myth of Steady Retirement Spending, and Why Reality May Cost Less
An article in Politico Describes the erosion of the pensions and standard of life of the US retirees. See the quotes below:
The American ideal of a happy, secure retirement is under threat as the economy changes and the financial foundations that supported previous generations erode. The decline of traditional pensions has increasingly shifted the retirement burden to personal savings, but stagnant wages and rising health care costs mean that it’s harder for Americans to build up a nest egg that can cover their costs through a longer lifespan. Social Security is on track to become insolvent in another decade or so, raising the possibility that even the marquee national safety-net program will have to reduce benefits to millions. As a result, older workers are postponing retirement, and businesses are feeling the effects in the form of reduced productivity.
Lack Of Money In Retirement
Some of the people at the age of retirement may have no retirement plans. Or they lost some of their saving on one of the stock market crashes. So now the need to keep working. A Bankrate 2017 survey found that close to one-third of senors lake emergency Funds and more than two-thirds have savings only for six months. Here is where the gig economy fills the gap. Freelancing will be a comfortable solution. Work from home, using the knowledge acquired in their long life in writing, and getting the money to enjoy a better economy in their retirement life.
Where Are the Government Benefits
Taking early retirement because you are unable to do your job anymore or other reason, will leave the retiree with a shorter amount on their pension check. The starting point of retirement is as low as 40 percent of the salary before retirement. We read in the previous section that many retirees have not enough money to let them live comfortably. Add to this the rise of Medicare premiums at 2018, and you see that gaining some money to add to the retiree budget must be welcomed.
Have Active Life And Keep A Working Brain
I can tell you about myself. I am 73 years old, just started a gig job less than two years ago with writing blogs and learning e-commerce and Search Engine Optimization. Those are good reasons for seniors to participate in the gig economy are; Having a reason to get up in the morning is one of the essential things for being happy elderly. Keeping the brain active by doing new things.
Like how to write a blog, enriching your vocabulary and problems solving will keep the retiree happy and healthy, avoiding physical and cognitive diseases. Having a routine of physical activity and a spouse or a companion how lives with him, or she is other factors that have a lot of positive influence on the quality of life of the elderly. Working as a gig writer or consultant will bare some income healthy and happier life.
Flexible Work Schedule
In most of the gig-economy, it is possible to enjoy of the best perk of this working style, the flexibility of the working time. You can set your working time as you like. Working more hour will let you earn more if you work fewer hours you will have more time to spend with your family. After a lifetime of hard work, maybe 60 hours a week, it is time to spend with your grown kids and grandchildren. As a senior, you will need time for physical activity and more time to check with the doctors. The gig economy can be very comfortable for seniors.
Learn Something New
I was a greenhouse specialist for all my working life, one day it was gone, a new generation took over. I was happy to find that I can keep learning new things and create something online that will keep me productive, not only financially but professionally. I am comfortable working with the millennials on building websites. Learning new trades like e-commerce and skills like writing can also help keep the brain active.
As I mentioned before, seniors need a reason to get up in the morning as one of the essential factors in growing old and feel good. A comfortable gig-job will do it for you. Many elderly keep working for this reason, not only for money. For example, there is a real-life story about a police officer that ended is work in the police as the library boss. Soon after he was retired from the police, he got sick. The doctors put him back on foot. He started helping the town library voluntarily; this was the best cure for him; he lived later many years with no health problems.
At the year 2017, CNBC reported that retirees are earning about 30 percent of their income having involvement with the gig economy.
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