New Report Finds 59% of Freelancers Are Owed $50,000 or More by Late Paying Clients
SAN FRANCISCO, February 17, 2022 (Newswire.com) - The Independent Economy Council has released findings from their new report, Getting Paid in the Independent Economy: Insights From 400+ 1099 Workers.
The report surveyed 416 professionals in the U.S. who earn the majority of their income from 1099 work and who directly invoice their clients.
Commenting on the findings, Rafael Espinal, President and Executive Director of Freelancers Union, said: "One of the biggest challenges freelancers face is getting paid on time, if not getting paid at all. Freelancers Union has been in the forefront of ensuring freelancers have the right to a contract and expanded payment protections. With the freelance workforce continuing to grow at record numbers, and 71% of freelancers reporting issues of non-payment, reports like this help create a more just and fair business environment for workers."
Key Findings:
- 74% of respondents are not getting paid on time. While 20% are getting paid in one day, 16% aren't getting paid for two months or more, and those who include a "Remit by" date are still not getting paid within their requested time frame.
- 72% have outstanding invoices that have gone unpaid by clients. 59% are owed $50,000 or more for already completed work.
- 40% are using dedicated invoicing software. 38% create their invoices from scratch using Microsoft Word or Google docs. 21% use a fillable template they downloaded.
- Only 52% say they're "very satisfied" with their invoicing. Their dissatisfaction comes from tools not integrating payments, invoices taking too much time to generate, and other factors.
- The majority are paying between $21 to $30 for their invoicing tool. 45% use a tool that costs $20 or less, and 28% pay over $20 for an invoicing tool. 17% use a free tool.
- They would pay more for specific features. 67% who pay for a tool would pay more for certain features and 67% who don't pay for a tool would be willing to pay if certain features were included.
- They would pay for an invoicing tool that has the ability to calculate and pay estimated quarterly taxes automatically, and that can create and send invoices with email and mail a physical copy. They also would pay for an invoicing tool that accepts payments online securely and hassle-free, and one that tracks payments and expenses to gauge profitability.
To download a full copy of the report, please click HERE
About Independent Economy Council
The Independent Economy Council was founded in 2021 by a community of workers, advocates, entrepreneurs, and researchers in order to increase economic security for American workers by making independent work more viable for everyone.
In light of the rapid growth of the Independent Economy, the Council advocates for public policy and industry guidance that align economic success and security for America's 68 million independent workers, as well as those who serve and pay them.
To find out more about The Independent Economy Council, visit www.independenteconomy.org
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Source: Independent Economy Council