That jump may lead to an increase in tax reporting requirements for companies, according to a recent analysis by tax solutions provider Sovos.

A surge in gig work over the past few years can be seen in the rising number of 1099 filings, according to tax solutions provider Sovos.

Based on a recent analysis, Sovos has seen a 33% increase in 1099-K forms filed from tax years 2020 to 2021, and a 17% increase in 1099-NEC tax forms, both of which are used by gig workers to report income, probably linked with the increase in remote work. While many companies are demanding their employees return to the office at least a few days a week, those who prefer remote work have responded by switching to gig and contract work for companies that allow the flexibility they crave.

As a result, companies should prepare for an increased volume of tax reporting forms, according to Sovos, as well as the potential fees and penalties that come with using inaccurate information on them.

“The tax compliance implications of this shift in the workforce combined with updates to IRS filing requirements are creating a real challenge for businesses of all sizes, and we’re seeing it in the tax withholding payments and filing processes with our customers instead,” said Wendy Walker, solution principal at Sovos, in a statement. “It is imperative that organizations understand how the future of work will affect not only their business but also their tax reporting obligations.”