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Commonly Asked Questions about Independent Contracting

The fact that platform 1099 workers made up only a very small share (1.4 percent) of the California workforce in 2016 may be surprising, given how much attention gig work has gotten. But other research has arrived at similar estimates.
What Is an Independent Contractor? An independent contractor is a self-employed person or entity contracted to perform work foror provide services toanother entity as a non-employee. Independent contractors must pay their own Social Security and Medicare taxes.
Millions more Americans may be self-employed than previously estimated, a research paper found, and these workers are more likely to be minorities and younger. The share of independent contractors in the labor force may be about 15% of all workers, ing to the study.
Groundbreaking research from the Upjohn Institute found that independent contractors make up around 15 percent of the workforce, about twice as much as previous estimates. Percentage of independent contractors doubles previous upjohn.org research-highlights percenta upjohn.org research-highlights percenta
ing to McKinseys research, the US workforce consisted of 61 percent W2 employees and 36 percent independent contractors in 2022. However, the number of independent contractors rose to 64 million in 2023 compared to 64 million the previous year.
What percentage of US workers are self-employed? 10.1% of the workforce is currently self-employed as of January 2023. Thats almost 16.2 million people. This figure includes both incorporated (6.56 million) and unincorporated (9.635 million) businesses.
In 2023, there were about 36.6 million occasional independent workers in the United States, an increase from 15.8 million in 2020. U.S. number of people working independently 2017-2023 - Statista statista.com statistics gig-economy-numb statista.com statistics gig-economy-numb
Make Sure You Really Are an IC. Choose a Business Name. Get a Tax Registration Certificate. Getting a Vocational License. Pay Estimated Income and Self-Employment Taxes. As Your Business Grows.
Freelancers have the most freedom by working remotely and setting their own schedules. They work directly with clients and choose which projects to accept. Independent contractors have more stability by signing a contract to work primarily with one client for a fixed amount of time.
It may pay the same (or even a higher) hourly rate than a comparable job. But there are downsides as well. Contractors pay additional taxes, cover some of their own work expenses, contend with irregular income and typically forgo employee benefits like health insurance and retirement.