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this post was submitted on 13 Jan 2024
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Mildly Infuriating
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In Australia my employer reports my income and does all the tax before I get paid. Then at tax time I go to the Aus tax office website; review it, add any claims I want to make and submit it.
This is an American solution to an American problem.
Yup. Especially because the IRS knows how much most of us are making. (If you're not completely in cash in the black market the IRS knows.) Your employer reports your earnings to the IRS.
Incredibly we have this system because the private tax preparation business has lobbied to make it hard to pay your taxes.
That's basically how it works here too. The situation in op is different because there's no employer.
Uhh what? There's no American tax website to login into to "verify" things were handled right. One still has to do a decent amount of work copying data into third party for-profit company web forms.
While it's easy for some to manage, it's by no means a simple process compared to what some other countries offer
There basically is. Your W2 gives you all the info about how much was withheld, and you can simply verify that it's right or not.
If you drive with Uber or something similar in Australia, I’m pretty sure you will be classified as self employed. I doubt Uber is your “employer”
Eh, as a rideshare driver you have a code conduct, rules about how to give rides, a dress code, a vehicle requirement (age, cleanliness, paint color, etc), and an agreement to be exclusive. (Yes all of those multi app drivers are breaking the rules.)
Just having the ultimate flex schedule isn't really enough to say you're independent.
Are you absolutely sure rage the Uber driver comtract requires exclusivity in Australia? That would five substantially different to the other countries it operates in - and I would expect that any such requirement would lead the tax authorities to put them squarely in the ‘employer’ category
Huh, TIL that there are countries that tech companies actually follow the laws in? In the US, they just do whatever they want.
I'm jealous.
Seems like they follow the law as voted for https://www.bbc.co.uk/news/business-64947695#
The law that Uber voted for yes. Drivers were extremely against it but Uber and Lyft have marketing budgets that drivers don't.
The thing is, just by existing law before that they should be employees. The only thing they actually get towards independence is the ultimate flex hours. Which isn't enough to be an independent contractor in any other industry. By federal law gig workers should be employees. But the government is bought and paid for. So Uber and Lyft and Amazon and UPS and FEDEX and the trucking industry all get to pretend their drivers aren't employees.
It could be worse, at least Uber and Lyft don't require you to buy the vehicle from them and they largely look the other way if you take rides from the other one. Trucking is far worse.
Your completely correct but Google also tells me that, at least in the case of Uber, it will calculate the tax for the ride and you just have to report it to the government at the end of the month. Also there are some really cheap accountants you can use over here and I'm sure they exist overseas as well, but I suppose I don't know OP's financial situation and neither of these are free.