Accounting for the Gig Economy

Overview

Freelance work and other non-permanent employment arrangements are becoming increasingly popular ways for people to earn a living. Although these non-traditional activities offer novel, flexible ways to earn income from diverse sources, they also introduce nuanced recordkeeping, reporting, and attestation issues. We investigate characteristics of the gig economy, employee-versus-contractor considerations, bookkeeping, regulatory compliance, and external reporting considerations. We also explore best practices for CPAs who fulfill the role of trusted advisor for gig economy clients.

Highlights

• Characteristics unique to the gig economy
• Independent contractor and employee classification considerations
• Recordkeeping considerations for independent contractors
• Accounting and reporting issues for gig economy participants
• Audit and attestation for clients who participate in the gig economy
• Tax and regulatory considerations
• The CPA as a trusted advisor for independent contractors

Prerequisites

Basic working knowledge of accounting and financial reporting

Designed For

CPAs in public practice and members in industry

Objectives

• Identify characteristics of the gig economy and its participants
• Distinguish unique circumstances encountered by gig economy participants
• Analyze implications of independent contractor considerations
• Identify recordkeeping, reporting and attestation issues for independent contractors
• Recognize unique regulatory compliance and external reporting considerations
• Identify best practices for CPAs who serve independent contractor clientele 

Preparation

None