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What Are the Different Types of Self-Employment Laws?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 04 July 2014
  • Copyright Protected:
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    Conjecture Corporation
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There are various types of self-employment laws to which a person must adhere. Some of these laws include requirements for starting and registering a business while others may apply to self-employment taxation. Some self-employment laws govern such issues as when a person may be considered an independent contractor rather than an employee. Additionally, some types of self-employment laws apply to worker’s compensation insurance and other types of coverage.

Each jurisdiction has unique laws when it comes to business and employment. For those who choose to work for themselves, there are often entirely different laws. For example, a self-employed person may face laws regarding starting and registering his business. Many jurisdictions require business owners to obtain business licensing, even if they conduct business from home. Sometimes self-employment laws also require an individual to register a name for his business.

Some self-employment laws involve taxation. This differs from place to place, but many jurisdictions have separate taxation rules for people who work for themselves rather than as employees. A self-employed person is usually solely responsible for all of his work-related taxes. This differs from what an employee can usually expect, as an employer typically pays a portion of an employee's taxes. To help ease the burden in the case of self-employment, many jurisdictions allow a person to deduct a portion of his self-employment taxes when he files his tax return or other tax documents.

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Self-employment laws also include those that involve determining whether a person is really self-employed or not. For example, in the event that a person earns money as an independent contractor, there may be some question as to whether he is truly an independent contractor or actually an employee. Many jurisdictions have unique laws and criteria for determining whether an individual has the right to use the independent contractor status when it comes to tax-related matters.

Often, self-employment laws also focus on requirements when it comes to insurance. In some places, a worker must have worker’s compensation insurance, for example, even if he is self-employed. Likewise, each jurisdiction may have additional laws when it comes to insurance for the business.

Depending on the jurisdiction, occupational safety laws that employers must follow may or may not apply to self-employed individuals. In some jurisdictions, a self-employed individual is not held to the same laws unless he is also an employer. On the other hand, self-employed individuals are still required to obey general laws, such as those that involve disposing of chemicals.

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