Self-Employed Write For Us
A self-employed person does not work for a specific employer who pays him a constant salary or wage. Self-employed or independent contractors derive income from direct contracts with a trade or business.
In most cases, the payer does not collect tax, so this becomes the responsibility of the self-employed person.
The self-employed can work in various occupations, but generally have high qualifications for a specific type of job. Writers, freelancers, traders/investors, lawyers, salespeople, and insurance agents can be self-employed.
Types of Self-Employment
Independent contractors are companies or individuals hired to perform specific tasks. They only get paid for the work they do. Because they are not considered employees, they receive no benefits or workers’ compensation, their customers do not withhold taxes from their wages for work performed, and they are not subject to equal opportunity laws.
Examples of independent contractors are doctors, journalists, freelancers, lawyers, actors and accountants who have their businesses. It’s worth noting that independent contractors aren’t just limited to specialty areas and can encompass a variety of tasks.
Sole proprietors are the sole owners of unincorporated businesses, while partnerships are two or more self-employed people setting up a business together. Independent contractors, sole proprietors, and partnerships typically hire a few employees to help them with their jobs.
It is estimated that the number of freelancers, particularly in the so-called gig economy, will continue to increase. In 2021, there were about $67.6 million freelancers, expected to grow to $86.5 million by 2027. By 2027, 50.9% of the workforce is expected to be freelancers.
What are the Most Important Forms of Self-Employment?
The main categories of self-employment are: the independent contractor, that is, a person who performs a specific job; a sole proprietorship, which is a business run by an individual and may employ additional employees; and a partnership, which is a business structure between two or more persons with ownership status.
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