Gigs vs Jobs - The Law

Okay, I’ve searched the internet and I’m getting mix messages. Can someone break this down for me please?

Is it illegal to have gigs?
Will the government come after you if you have a
Gig?
What makes the two different?
Can a minor have a gig in the eyes of the law?
Can you have a gig to avoid taxes?

Thank you in advance for the feedback :heart:

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It gets complicated, and naturally, it’s the IRS that gets into your stuff if they don’t like what you’re doing, so the “law” can have varying application (because they can give you hell without ever taking you to court.)

Basically, the best definition of the difference between a employment and contract work (which I believe is what you’re asking about) is a combination of who pays you, what your benefits are, and whether you work solely for one party. If you work for one party and they strictly define what you do every day and your hours, the IRS will typically consider you an employee. If your situation varies from that, you may be able to call yourself a contractor without trouble.

My work is kinda interesting in that regard. For most of the last 15 years or so, I’ve “worked for” a company that rents me out to exactly one other company (at a time–it’s been three or four.) I “get away” with that because the company I “work for” does the payroll taxes, benefits, etc., even though my work product goes to “the client.” The whole REASON for the middle man is because of the IRS.

Because of the arrangement, I could decide not to show up for work when I choose, decide not to do things exactly the client’s way, etc. Of course, those would be bad business decisions, and could lead to my client deciding they no longer have work for me. :slight_smile:

The IRS MAY come after ANYONE for taxes. It’s all based on having income, if they know.

Minors can work if their state lets them. The easiest way is to work under the table, but if they know, there are forms to fill out, etc. As a teen going to a private school, I had to get permission from a public school bureaucrat to work at a restaurant before being 18. The “job” I had gardening before that was under the table, and required no such nonsense.

If you work under the table and the IRS catches you, they may track you down and bill you for back taxes. It happened to me in my first job writing software, when my employer was audited. He gave me a surprise 1099, and the IRS additionally billed me for previous years. A 1099 form is a statement that a business has paid a contract worker (among other things) without deducting any payroll taxes. It essentially rats you out so you nave to pay taxes.

Maybe it would be best for you to ask someone like Melanie about the feasibility of any particular plans.

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There is no such legal term as a gig.

As an employer or “employee?”

Legally an “employee” is either a employee or a contractor. There are entire regs and lots of case law on this. But generally speaking its about level of control- are they paying you to do whatever by the hour, or are they paying for a specific job? *Terms and conditions apply.

If you are an employee you get a W2. If you are a contractor, and are paid more than $600 in that year by that employer you get a 1099.

All of this is subject to income theft, even amounts below the reporting thresholds.

If they don’t know about it, they can’t tax it. This is illegal though.

Yes-ish. If they are truly self-employed then they can’t be illegally employing themselves.

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Let me explain where I got the idea of gigs from.

Craigslist has a section called gigs where people post one time jobs there. What I wanted to know could a minor go on there and pick up work? Let’s say I need my lawn cut, could a kid go on there and agree to cut my lawn without legal repercussions from either side?

Could an adult go on Craigslist and cut lawns per person and not really be apart of a business?
From what I understood from Mel, after this said adult works up to $600, he would have to pay income tax?

What I want to understand is I’ve never heard of people on Craigslist getting in trouble for doing odd end jobs. Why is that?

As long as its not otherwise prohibited, yes. From what you’re saying the minor would be self-employed.

Yes.

At $600 any individual payor is required to send a 1099. The filing requirement for self-employment is $300.

Where would you hear of that? Craigslist isn’t going to get in trouble because matching people with jobs isn’t illegal. Failure to claim income is illegal. Have you never heard of a case of tax evasion, or have you never heard of a case of tax evasion from income the person heard about on Craigslist? People do illegal stuff all the time and you don’t hear about ALL the details because either they don’t get caught or some detail just isn’t news worthy.

Do people forget there’s cash?

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When I’m looking for any sort of a deal, I often offer cash. It’s amazing the deals you get if you offer cash.

People have covered the law. Here’s theoretical reasoning for it being so.
Gov is like the mafia. If they’re not getting their cut, they’ll be coming after you once its worth the trouble or want to set an example.

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gov is like the mafia in that they are a criminal gang who uses various means of violence(kidnapping, assault, theft, murder) to extort you. almost like the mafia charging protection money. but like live said, most of the time if its not enough money to interest them you might not have a problem