What Is Self-Employment? A self-employed person does not work for a specific employer who pays them a consistent salary or wage. Self-employed individuals, or independent contractors, earn income by contracting with a trade or business directly. In most cases, the payer will not withhold taxes, so this becomes the responsibility of the self-employed individual. Self-employed
Who Is a Self-Employed Person? A self-employed person is an independent contractor or a sole proprietor who reports self-employment income. Self-employed people work for themselves in a variety of trades, professions, and occupations rather than working for an employer. Depending on the jurisdiction, self-employed persons may have special tax-filing requirements. Key Takeaways A self-employed person
What Is the Self-Employment Tax? The term self-employment tax refers to taxes self-employed individuals and small business owners pay to the federal government to fund Medicare and Social Security. The self-employment tax is similar to Federal Insurance Contributions Act (FICA) tax paid by employers. This tax is due when an individual has net earnings of
What is Self-Insure? Self-insure is a risk management technique in which a company or individual sets aside a pool of money to be used to remedy an unexpected loss. Theoretically, one can self-insure against any type of damage (like from flood or fire) In practice, however, most people choose to purchase insurance against potentially significant
What Is a Self-Invested Personal Pension (SIPP)? A self-invested personal pension (SIPP) is a tax-efficient retirement savings account available in the U.K. SIPPs give individuals the freedom to allocate their assets in a wide range of investments approved by the country’s Her Majesty’s Revenue and Customs (HMRC), a non-ministerial department of the U.K. government responsible for tax collection and the payment of
What Is Selfish Mining? Selfish mining is a deceitful cryptocurrency mining strategy in which one miner or a group solves a hash, opens a new block, and withholds it from the public blockchain. This action creates a fork, which is then mined to get ahead of the public blockchain. If the group’s blockchain gets ahead
What Is a Self-Liquidating Loan? A self-liquidating loan (or self-liquidating offer) is a form of short- or intermediate-term credit instrument that is repaid with money generated by the assets it is used to purchase. The repayment schedule and maturity of a self-liquidating loan are timed to coincide with when the assets are expected to produce
What Is a Self-Tender Defense? A self-tender defense is a strategy utilized by a company to discourage and thwart a hostile takeover. If the management of the company targeted for acquisition does not wish to relinquish its control, they may take action to try and prevent this from happening by making a tender offer for its own
What Is Sell? The term sell refers to the process of liquidating an asset in exchange for cash. Liquidation is a term used to describe the conversion of non-liquid assets, such as real property, stocks, or bonds, into liquid property, such as cash, through an exchange on the open market. For example, your house is
What Is a Sectoral Currency? A sectoral currency is a medium of exchange that only has value in a limited marketplace in terms of geography or purpose. Local currencies, also known as a community currency, and local exchange trading systems (LETS) are examples of sectoral currency in use. The Fureai Kippu is a well-known example of
