Self-Employed Worker

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A Self-Employed Worker is a paid worker who has business relationships with many legal entities over the course of a year.



    • QUOTE: ... the case demonstrates “what a thin and sometimes artificial demarcation line there is between these two concepts” of employees and independent contractor. The determining factors are how much control the company has over the worker, and how much entrepreneurial opportunity the worker has, he said.

      If individuals are employees, their companies bear liability, he said. “The only way liability could be avoided would be to say that the so-called independent contractor is truly a separate business on his/her own.”


    • Self-employment is the act of generating one's income directly from a consumer as opposed to being an employee of a business (or person).

      Generally tax authorities will view a person as self-employed if the person (1) chooses to be recognized as such, or (2) is generating income such that the person is required to file a tax return under legislation that subsists in the relevant jurisdiction(s). In the real world the critical issue for the taxing authorities is not is the person trading but is the person profitable (and hence potentially taxable.) In other words the activity of trading is likely to be ignored if no profit is present. So, occasional and hobby- or enthusiast-based economic activity is generally ignored by authorities.

      Self-employed people generally find their own work rather than being provided with work by an employer, earning income from a trade or business that they operate.

      In some countries governments (the US and UK, for example) are placing more emphasis on clarifying whether an individual is self-employed or engaged in disguised employment, often described as the pretense of a contractual intra-business relationship to hide what is otherwise a simple employer-employee relationship.