Self-employment refers to working for oneself rather than working for a specific employer who pays a salary. A self-employed person is anyone who earns their living from any independent pursuit of economic activity as opposed to earning a living working for a company or another individual (an employer) . Self-employed individuals may be involved in a variety of occupations but generally are highly skilled at a particular kind of work. Some examples of self-employed individuals include independent contractors, sole proprietors of businesses, and individuals engaged in partnerships.
Self-employed individuals are considered to be running a business as an independent contractor, a sole proprietor, or a member of a partnership. They are not the same as business owners since the latter may hire employees to work for them and become the boss with responsibilities of supervising others while managing operations. Self-employed individuals must pay income taxes and Social Security and Medicare taxes in the form of a Self-Employment Contributions Act (SECA) tax. The self-employed individual pays both the employer and employee portion of the taxes since their clients do not withhold taxes.
Self-employment offers several benefits, such as becoming ones own boss, enjoying unlimited amounts of creativity without fear of opposition from a manager, and exerting complete control over most business decisions. Finally, with self-employment comes a sense of pride and achievement in creating a successful business and the power to make changes as one feels.
