Self-Employed Person

Filed Under »
Dictionary Says

Definition of 'Self-Employed Person'

An independent contractor or sole proprietor who reports income earned from self-employment. Self-employed persons control who they work for, how the work is done and when it is done.

Investopedia Says

Investopedia explains 'Self-Employed Person'

Self-employed persons must pay estimated taxes, usually on a quarterly basis, to cover their FICA and FUTA contributions. They must pay twice as much of the FUTA tax as W-2 employees, who have half of their Social Security and Medicare tax paid by their respective employers.

All self-employed persons report their business income and expenses on Schedule C.

Related Definitions

  • Self-Employment Tax

    A tax imposed on self-employed people, who must pay this tax in order to receive social-security benefits upon retirement.
    Read More »
  • Tax Schedule

    A rate sheet used by individual taxpayers to determine their estimated taxes due. There are four main schedules used, based on the filing status of the individual:Schedule X - ...
    Read More »
  • Sole Proprietorship

    The sole proprietor is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest ...
    Read More »
    • Federal Insurance Contributions Act - FICA

      A U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA ...
      Read More »
    • 1040 Form

      The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. The form contains sections that require taxpayers to disclose their ...
      Read More »
    • Captive Agent

      An insurance agent who only works for one insurance company. A captive agent is paid by that one company either with a combination of salary and commissions or with just commissions. He ...
      Read More »
    • Principal Place Of Business

      The primary location where a taxpayer's business is performed. The principal place of business is generally where the business's books and records are kept and is often where the head of ...
      Read More »
    • Independent Contractor

      A self-employed taxpayer that controls his or her own employment circumstances, including when and how work is done. Independent contractors are not considered to be employees and must ...
      Read More »
    • Statutory Employee

      A class of employee that is permitted to deduct work-related expenses on Schedule C instead of Schedule A. Statutory employees are usually salespeople or other employees who work on ...
      Read More »
    • Lipstick Entrepreneurs

      Independent, self-employed businesswomen who sell makeup or other female-oriented products and services. Lipstick entrepreneurs are viewed as leaders of the "femterprise" movement. In ...
      Read More »

Articles Of Interest

Partner Links