SelfInformed

April 2016


NASE Releases New Survey Data On Sharing Economy

Friday, April 29, 2016

The new survey finds that an overwhelming majority of those who responded – 69 percent – have not receive any tax guidance from the shared economy platform they are working with. In fact, the data underscores the importance of educating shared-economy entrepreneurs about the fact that they, too, are operating a self-employed, small business.

Those participating in the sharing economy are self-employed, small business owners and are operating a legitimate business because they are subject to a specific set of tax obligations, business regulations, reporting requirements while expressing behavioral traits of the self-employed, such as working when you want, for as long as you want, being your own boss and others. Despite engaging in the sharing economy for a fixed and/or limited amount of time to achieve a pre-determined goal (i.e, pay off debt, increase personal cash flow, secure income during full time unemployment), it is important they think of their activity as a business (a self-employed, small business, to be specific).

During March 2016, the survey was sent to over 40,000 small businesses garnering over 500 responses from small business owners, mainly the self-employed, about their participation in the sharing economy. Some of the key findings include:

  • A majority of those who responded – 69 percent – did not receive any tax guidance from the shared economy platform they worked with;
  • An overwhelming majority of over 90 percent indicated they used a professional tax preparer or software to prepare their taxes;
  • Of those who used a professional tax preparer or software, over 50 percent paid over $150;
  • The results were evenly split between those who set aside money to pay their 2015 tax bills and those who did not.


Bottom-line: those who participate in the sharing economy are small business owners part of the largest and growing small business demographic: the self-employed. This comes with a host of tax liability, obligations and responsibilities.

Katie Vlietstra is NASE’s Vice President for Government Relations and Public Affairs

Comment

  1. RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
    RadEditor's components - toolbar, content area, modes and modules
       
    Toolbar's wrapper 
     
    Content area wrapper
    RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
    It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
    Editor Mode buttonsStatistics moduleEditor resizer
      
    RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.
       

Business Management Blog

Your Connection to Small Business Specialists

Read the Blog!