Short Answer 
Gig workers are responsible for both employee and employer payroll taxes, as taxes are not automatically withheld from their earnings. Unlike full-time employees, they must independently manage and calculate their tax liabilities while also planning for payments throughout the year to avoid financial strain.
Understand Your Tax Responsibilities
Gig workers must recognize that they carry the responsibility of paying both the employee and employer portions of payroll taxes. Unlike full-time employees, gig workers, categorized as independent contractors, do not have taxes withheld from their earnings automatically. This means they need to manage and calculate these taxes independently.
Know the Difference in Tax Withholding
Full-time employees benefit from automatic tax deductions from their paychecks, which means their tax contributions are managed by their employers. In contrast, gig workers receive their full earnings and must set aside funds for taxes, making it crucial for them to understand how to calculate what they owe, ensuring they meet legal requirements.
Plan for Tax Payments
To avoid financial strain, gig workers should consider planning their tax payments throughout the year. They can achieve this by estimating their tax liabilities based on their earnings and setting up a separate savings account to store the necessary funds for tax time. This proactive approach can help prevent any surprises when tax season arrives.