How to Determine Self-Employed Status

Determining yourself as self-employed is not that difficult. You will be required to perform this task to be able to calculate your income tax and paying your employees. For those who are self-employed they will know that their customers do not want to pay worker’s compensation or pay into your social security. You might come across employers that do not pay their employees by claiming they are self-employed. Furthermore, there are some employers who will simply mess up. Luckily, the steps involved in determining self-employed status are simple. Consider following some instructions to get this job done easily.


  • 1

    Before doing anything else, you will need to make yourself familiar with the Internal Revenue Service guidelines to determine the facts and figures about your self-employment status. You will need to know how much control the company has over the kind of work you are doing. If the people that are hiring you are your clients rather than the employer then you are self-employed. If this the case then your clients will have very limited right to say over your hours of work, techniques and dress. If possible, come up with your own rules at work.

  • 2

    For those who get a monthly salary from their companies and that particular company pays for all the equipment in the office including the chairs, table, printer, fax machine, land-line and the internet then you are probably not self-employed. If you are employed by another business, you will also be eligible for reimbursement of your expenses. On the other hand, if you purchased all the equipment by yourself then you are self-employed.

  • 3

    Find out whether your work is open-ended and could possibly go on permanently. Freelance workers take on particular projects, usually with strict deadlines and often under agreement. If you contract is for a permanent position then you are a full time employee and not self-employed. It might sound a little technical but it is important that you get your status of being self-employed right. This will help you with taxes and other issues which you will face further down the road.

  • 4

    Review your job depending on all three requirements and choose on your position. There's no one concept that effectively decides if you're self-employed so you have to consider all factors of the position. You might need to get some assistance to help you find out if your status is self-employed or not. Check out different websites and ask others to get further assistance.

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