Catherwood LibraryILR School

While many employees dream of the benefits of a freelance life – flextime, flexplace, being one’s own boss – the challenges – primarily financial and administrative – can be beyond what’s imagined. Freelancers are part of the expanding contingent workforce, which is estimated to make up one-third of U.S. employees. The challenges are that an employer is no longer contributing toward Social Security, health insurance, retirement, or paid vacations; women may find putting off maternity plans due to the uncertainty of income and lack of provided paid leave. Some may find that lack of training, the complexity of meeting tax requirements, and unfamiliarity with current demand has led them to undercharge for their services, but charging more in a gig economy may not be possible in low-paying fields or where competition for services is fierce. Financial insecurity makes it difficult for independent workers to save money; only 8 percent are able to save for retirement, compared to 42 percent of those with an employer.