Etsy Proposes to Change the Gig Economy

by Parker Saunders

According to CBS News, a million people are dependent on the gig economy for earning at least part of their income today. One of the largest and best known examples of this is Etsy, where you can shop for homemade and vintage items.

Etsy is currently attempting to change the way the gig economy workforce platform functions. Currently this software allows workers to register, get a job, do the work and get paid by companies who offer jobs via this type of software. As an employer you not only offer jobs, but track time, and review everything from your end. If Etsy has their way this software will also need to collect employment taxes as well.

On Tuesday, September 27, 2016 Etsy published a white paper listing how they feel this is a necessary change because this “would make it easier for workers.” Of course, it’s up to the person working as a self-employed professional on this platform to state whether they want such taxes withheld. Additionally, Etsy wants to allow workers to have extra money withheld and placed into a benefits account ran by the U.S. government.

According to Etsy, the benefit to this is fewer administrative headaches. They also believe more people would set money aside if it’s deducted directly from their “paycheck.” As such, Etsy is arguing this is really a win-win situation for everyone and thus something that lawmakers in Washington, D.C. should put into effect as soon as possible. Althea Erickson, Etsy’s Senior Director of Advocacy and Public Policy, says these are only the beginning of the changes Etsy is prepared to push for in the near future.

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