If someone is working as an independent contractor for a company, is that considered self employment?

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If someone is working as an independent contractor for a company, is that considered self employment?

If someone is working under a company as an independent contractor, paying for
their own supplies, would that be considered as self employment? How would you
determine how much taxes to pay if none are deducted from your weekly income?
Will there be a penalty during income tax time of unpaid taxes?

Asked on October 5, 2019 under Employment Labor Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

If someone is truly an independent contractor (and purchasing their own supplies is an indicia of being an independent contractor) then they are self-employed.
Taxes: how much has to be paid in taxes depends on income (since tax rate varies with income) and the number of deductions, including business-related deductions (such as for the aforementioned supplies), the person has: there is no easy or simple answer we can you. The self\-employed person should consult with an accountant or tax preparer who can help them maximize their deducations, advise them as to what theit total tax liability will likely be, and also advise them as to the estimated payments they should make so as to avoid penalties for not having paid any taxes during the year.


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