Huge Changes to Gig Payment

[glpg80]

https://www.dol.gov/newsroom/releases/whd/whd20240109-1

Effective 03/11/2024 you’ll now likely be required to be an employee of a place you gig and have a W2 for that location as if you’re a regular employee. The US Labor Department has redefined what is gig work.

I wonder if that means the equipment we use professionally cannot be written off by you the owner but rather the employer you use it under?

I haven’t read into this enough yet but RT needs to know what has just happened. It directly affects all of us and our ability to freelance gigs.

 

[Tone Monster]

I hate the government

 

[Ben Waylin]

This is why I setup with a Pignose amp next to traffic intersections.

 

[Gitfiddler]

I didn't read the article, but maybe the venue owner will provide medical and dental benefits to the bands

 

[crankyrayhanky]

ahhh, we've all been living large with that massive gig money for so long, it finally caught up to us

 

[Meanjoegreene]

Can I count my bar tab as a deduction?

 

[SpiderWars]

https://www.dol.gov/newsroom/releases/whd/whd20240109-1

Effective 03/11/2024 you’ll now likely be required to be an employee of a place you gig and have a W2 for that location as if you’re a regular employee. The US Labor Department has redefined what is gig work.

I wonder if that means the equipment we use professionally cannot be written off by you the owner but rather the employer you use it under?

I haven’t read into this enough yet but RT needs to know what has just happened. It directly affects all of us and our ability to freelance gigs.

So bands must get at least minimum wage now? That’s a pretty big raise for some places.

And what about pay-to-play? Is the venue then the band’s employee?

Dumb af questions for a dumb af law.

 

[GJgo]

https://www.dol.gov/newsroom/releases/whd/whd20240109-1

Effective 03/11/2024 you’ll now likely be required to be an employee of a place you gig and have a W2 for that location as if you’re a regular employee. The US Labor Department has redefined what is gig work.

I wonder if that means the equipment we use professionally cannot be written off by you the owner but rather the employer you use it under?

I haven’t read into this enough yet but RT needs to know what has just happened. It directly affects all of us and our ability to freelance gigs.

Can you point to where in the bill is addressing gig work specifically? As an employer I follow this stuff pretty closely, and I'm not seeing how this article is aimed at gig workers. This is aimed at employers who hire regular employees but misclassify them as independent contractors to get out of paying the various employment taxes.

 

[Devin]

Can you point to where in the bill is addressing gig work specifically? As an employer I follow this stuff pretty closely, and I'm not seeing how this article is aimed at gig workers. This is aimed at employers who hire regular employees but misclassify them as independent contractors to get out of paying the various employment taxes.

Was wondering the same thing but thought it was just because I'm a dumbass and didn't understand what I was reading (very possible)

 

[MadAsAHatter]

Can you point to where in the bill is addressing gig work specifically? As an employer I follow this stuff pretty closely, and I'm not seeing how this article is aimed at gig workers. This is aimed at employers who hire regular employees but misclassify them as independent contractors to get out of paying the various employment taxes.

This is how I read it as well. Though these bills tend to have unintended consequences and may screw over actual gig workers.

 

[glpg80]

Can you point to where in the bill is addressing gig work specifically? As an employer I follow this stuff pretty closely, and I'm not seeing how this article is aimed at gig workers. This is aimed at employers who hire regular employees but misclassify them as independent contractors to get out of paying the various employment taxes.

My understanding is that it impacts gig workers who identify as independent contractors and return for regular work. You perform a task, get paid, and no benefits or taxes are paid ahead of time or are included. They redefined who qualifies for independent contracting. Basically it seems as though if you gig a place regularly enough it’s an employer-employee relationship and not a business-business relationship unless you create your band under an LLC or some sole proprietorship? If you’re Joe Dirt getting paid for X gig then it falls within this from what I see. Also if you’re a band and there’s a leader of the band that gets paid, the leader will be responsible for creating W2s for your band mates that are employees and you’ll be on the hook for the taxes and other requirements by law. It’s a total cluster.

 

[VonBonfire]

Seems like a lot about nothing to me.

https://www.federalregister.gov/doc...sification-under-the-fair-labor-standards-act

From the link:

"As used in this rule, the term “independent contractor” refers to workers who, as a matter of economic reality, are not economically dependent on an employer for work and are in business for themselves. Such workers play an important role in the economy and are commonly referred to by different names, including independent contractor, self-employed, and freelancer. This rule is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves."

The overwhelming majority of gigs fall under this. Possibly a weekly or bi-weekly residency might change things but you'd still be freelancing for other clubs so it would seem to negate being economically dependent on a single club or gig. Maybe if you were working a cruise ship or amusement park as an "independent" prior to the rule you might be affected but otherwise this ain't worth sweating over guys. Even then, the onus isn't really on the performer. As I said, a whole lot of nothing.

 

[GJgo]

While we're here.. Anyone who pays more than $600 in a year is supposed to 1099 the payee, that's been on the books forever. When was the last time anyone here got 1099d for gigs?

 

[VonBonfire]

While we're here.. Anyone who pays more than $600 in a year is supposed to 1099 the payee, that's been on the books forever. When was the last time anyone here got 1099d for gigs?

All the time for my group. Most clubs here are do this, but the turnover rate of those clubs is usually so high that the person keeping books quits and a new person is hired and and all the tax and pay out info is lost, misplaced, or just tossed so I never receive anything from the club at tax time. I still pay my taxes on that income though, it's not worth it trying to beat the man out of a few bucks. You do not want the IRS on your case because they will assess your back taxes plus penalty and there ain't a damn thing you can do about it if it's not accurate. Maybe hire a tax lawyer $$$$$$$, even more costly if we are talking local and regional working musician wages.

 

[MadAsAHatter]

I was trying to find out a little more on this and came across a John Stossel report on how this pretty much backfired in when something similar was enacted in Cali. several years ago. A part of it centered on how it affected musicians.

Edit: Replaced the video with one from a few days ago that contains the original report and addresses the new federal law.

 

[BeZo]

 

[JackTripper]

Seems like a lot about nothing to me.

Agree, it is a lot about nothing especially if you are a weekend warrior playing gigs here and there.

It's really targeted toward the "gig economy" sector that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. There are billion dollar companies making use of this business model, such as Uber, Lyft, Airbnb, Door Dash, Grubhub, Instacart, Amazon Flex etc. Gig workers have no job security and few benefits such as health coverage and paid vacation time.

 

[MusicIsLife]

Seems like a lot about nothing to me.

https://www.federalregister.gov/doc...sification-under-the-fair-labor-standards-act

Yup. It's basically just a clarification and then codification of what has already been the practice of the DOL and courts for decades. It's for what are essentially established, perpetual work relationships, where the employer is classifying the employee as a contract worker in order to skirt FLSA and other requirements.

 

[VonBonfire]

Here is a link tied to the OP's post:

https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking/faqs

Read it. There are so many things a working musician has going that would show that he is still an actual independent contractor if you read closely. Like the gear and maintenance costs associated, the advertising of events, the sporadic nature of music work. Read the "skill and initiative" section. It's pretty clear to me this isn't going to affect music work, and if it does at least I'll have a decisive answer and can quit torturing myself chasing the dream and instead go be a mountain man.

 

[Rayneman]

While we're here.. Anyone who pays more than $600 in a year is supposed to 1099 the payee, that's been on the books forever. When was the last time anyone here got 1099d for gigs?

From my experience, and I do not manage this aspect of our band's stuff in any way, it depends on the venue. We play some bars that are happy to pull out a sheaf of cash from somewhere at the end of the night, while others pay by check, and I suppose even others via some electronic method that I don't see. We've gotten 1099's from our band leader a couple years, but at some point he (or his tax guy) figured how to deal with that. This is not to say we are some highly-paid show band, but rather your average bar cover band that also gets some private/corporate events that do end up paying higher amounts.