There’s just so much going on. Financial stress can stem from inflation, interest rate hikes, pandemics and more. The benefit of multiple revenue streams is clearer now than it has even been.
It can seem like a lot to undertake. If you already have a primary job, the idea of adding more to your plate after a hard day’s work is likely not a pleasant one. Yet in the end, you’ll thank yourself for the extra effort. Read on to learn more.
There is work known as gigging. This refers to picking up side work in addition to your primary job. It allows you supplemental income to help bolster your finances. It’s important, though, to read the fine print before becoming a gig worker.
For starters, most gig work falls under a 1099 contract.
That means that you’re considered an independent contractor, and your employer will not likely take taxes out of your paycheck. This can feel like a big win at payment since you’re getting your full amount due. But for those familiar with this type of work know what’s ahead.
The truth is, even though your employer didn’t take the taxes out, you’re still responsible for paying those taxes. When tax time comes around the following year, you’ll likely end up owing more in federal income tax. Keep a close eye on this to ensure those taxes don’t sneak up on you when payment is due.