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If a Business Retains Someone to Provide Services, That Person

question 86

Essay

If a business retains someone to provide services, that person may either be an employee or be self-employed (i.e., independent contractor).
a. What are the tax advantages to the business of having the service provider classified as self-employed?
b. What are the advantages and disadvantages to the service provider of self-employed status?


Definitions:

Workaholism

Addiction to work in which one has an internal compulsion to work, thinks persistently about work, and works excessively.

Compulsion

The action or state of forcing or being forced to do something; constraint.

Internal Compulsion

Internal Compulsion is a psychological force that drives individuals to act in a certain way or pursue certain actions, often without external pressure.

Achievement-Oriented

Pertaining to an individual or organization that consistently aims for and pursues high levels of accomplishment and success.

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