A long-term bet on the gig economy

Shares of online freelancer employing platform Upwork tumbled in March, as Wall Street stressed that an economic slowdown would prompt organizations cutting temporary workers and freelancers. In May, however, as the business picture has become clearer, Upwork's shares took off. The stock is up over 15% for the year.

Why it could beat: More than 36 million individuals have recorded initial unemployment claims over the last two months. A few analysts are worried that many permanent, full-time employments may not return quickly...if ever. That could help demand for short-term freelance employees, as organizations try to briefly fill knowledge and experience gaps. It also ups the probability that job seekers will go to Upwork to search for freelance and agreement based gigs while they search for something more long-lasting.

Why it's trading under $13/share: Despite consistently increasing revenue since it opened up to the world in 2018, Upwork still isn't gainful, nor is it consistently cash flow-positive. That is fundamentally because it's spending vigorously on marketing and R&D, which makes sense for a youngster tech organization. Shockingly, Upwork has figured out how to avoid racking up huge amounts of unpaid liability. In the end, however, Upwork should show it can really make money over the long term while pulling in clients and fighting off competitors.

Tax tips that Canadians can count on

Freelance work

Temporary workers doing freelance jobs usually don't have any tax deducted at the course, which can represent a challenge when it comes time to document a tax form. One approach to avoid a terrible shock is to make a different bank account to deposit funds that will later be utilized at tax time. Reasonable costs of doing business might be deducted from your income. In any case, strangely high business cases can strongly lift the probability of being audited. What's more, remember that the self-employed are required to pay the worker and boss portions of Canada Pension Plan contributions. On the upside, they are eligible for a deduction for the business portion and a nonrefundable tax credit for the worker portion.

Child care expenses

As indicated by H & R Block Canada, lunchtime management costs can be claimed as child care expenses. This is also valid for the expenses of before-school and after-school programs.

Student loan interest

This can be claimed as a tax credit, which implies it gets deducted directly from the amount of tax owed. Be that as it may, interest on private loans or credit extensions can't be claimed on a tax return form.

Severance packages

These are taxable as singular amount payments. For exceptionally long-term workers, it's occasionally possible to move some of this to an enrolled retirement reserve funds plan, which would shield it from being taxed until it's withdrawn from the plan.