Self-employment includes, but is not limited to, running one's own business, trade, or profession. Examples of self-employment include: providing childcare, repair services, seasonal outdoor labor, selling products, online businesses, and renting a room in one's home.
To identify self-employment, the CAO will determine who is responsible for withholding taxes from the individual's earnings. If another individual is responsible for withholding Social Security taxes and income taxes from an employee's earnings, the individual is not self-employed. If an individual must send their own monthly or quarterly payments to the Social Security Administration (SSA) and the Internal Revenue Service (IRS), they are self-employed.
Examples:
Sue is a housekeeper for the Weavers and receives a weekly paycheck. The Weavers pay Social Security taxes and income taxes for Sue. The Weavers are Sue's employer. Sue's income is not considered self-employment.
Dean cuts grass for Jim Johns and Jose Carabello. Dean is responsible for making quarterly payments to Social Security SSA and the IRS. Dean's income is from self-employment because they do not pay taxes for Dean. Dean files a 1040 Schedule C for income taxes.
Nicole is self-employed and sells Scentsy and Pampered Chef products. Nicole is responsible for paying SSA and income taxes and will file a 1040 Schedule C for income taxes.
Gary is self-employed as an independent drywall contractor. Gary was hired to work for Smith Construction. Smith Construction will complete a 1099 for Gary but Gary is responsible for paying SSA and income taxes.
Updated May 27, 2026, replacing March 1, 2018