Self-Employment

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Self-Employment

The state of owning a business or working as an independent contractor. In the United States, self-employed persons pay double the social security tax of employed persons, but are entitled to more tax deductions. One calculates self-employed income by taking one's gross income and deducting all business expenses. For example, a self-employed person working from home may deduct a certain percentage of his/her rent or mortgage and not pay taxes on that portion of his/her income. Self-employed income is reported to the IRS on Schedule C of the 1040 Form.
References in periodicals archive ?
If a self-employed person also receives wages as an employee, what portion of income is subject to tax as self-employment income?
Legally organised in that way, they didn't have to sign players as workers but as self-employed persons so the mandatory health and pensions contribution along with tax, became players problem.
A life insurance agent who does not qualify as an employee under the common-law test, and who is not a "full-time life insurance agent," is covered under Social Security as a self-employed person.
Thus, a self-employed person may be eligible to contribute more than 10 times as much to a Keogh plan as to an IRA.
Directive 08-3 makes clear that not only is the contribution made by the self-employed person not deductible, but any contributions made by the business for the benefit of the self-employed person are not deductible.
This legislation will prevent this situation by requiring certificates of insurance to identify by name any self-employed person, partner, or corporate officer that is excluded from coverage under a policy," the Senator said.
The 90-days-regulation also applies tn self-employed persons who want to work in Switzerland for up tn 90 days without setting up a domicile in Switzerland.
If you trade as a self-employed person (or as a partner in a partnership or Limited Liability Partnership), you need to register with the Inland Revenue to pay Class 2 National Insurance (pounds 2 per week) no later than the end of the third full month after the end of the month in which you start to avoid a pounds 100 fine.
The premium differential between the employee and the self-employed person simply reflects the negative of the risk premium.
You have been sent it because the Revenue believes you to be either a higher-rate tax-payer, self-employed person or somebody who received income that has not been taxed at source.
But, if a self-employed person were to leave his or her monthly payments unchanged, they would effectively boost the amount going into their pension by 28 per cent because the Inland Revenue will still pay in the tax credit on top.

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