Self-employed

Self-employed

Self-employed is a legal term that is.

referring to persons who work for themselves and are not employed by another. The owner-operator of a sole proprietorship or a partner in a partnership is considered self-employed. Self-employed persons assume all the risks and responsibilities of a business enterprise and are subject to the self-employment tax, in addition to the income tax, on net income from self-employment activities. The self-employment tax is paid in lieu of the Social Security payments that are deducted from the wages of employees. Former IRC (check if this IRC provision is current here) §401(C).

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *