Dictionary of Business Terms: self-employed
self-employed
individuals 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. Those who are self-employed assume all the risks and responsibilities of a business enterprise and are subject to self-employment tax, in addition to income tax, on net income from self-employment activities. The selfemployment tax is paid in lieu of the Social Security payments.
