What is the difference between Self Employed and Employee? - ProProfs Discuss
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What is the difference between Self Employed and Employee?

Asked by R. Barnes, Last updated: Dec 26, 2019

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3 Answers

A. Boaz

I have compassion for Automobiles and I dig the fast pace while I ride or drive.

A. Boaz, Mechanical Engineer, Diploma in Mechanical Engineering, Atlanta, Georgia

Answered Oct 08, 2019

Self-employed and employees are two terms for two different types of people. Self-employed refers to an individual who owns a particular business and does not work under anybody or company. This set of people work for themselves either by owning a business or by remotely discharging a particular service to people. An employee, on the other hand, is someone that is under a contract to offer a particular service to people. An employee can be hired by a small business, government, or by private business. An employee does not have total freedom; he must follow every rule and regulation set by his employer.

Self-employed people, on the other hand, have total freedom as to how they want their business to be run, they are not answerable to anybody. An employee is working for the progress of their employer, while a self-employed person is working to increase his own profits. An employee has access to different bonuses from his employer, but there is no provision for this as a self-employed person except for the profits that come from the business.


N. Kingsley

N. Kingsley, Writer, Columbus

Answered Sep 10, 2019

Self-employment is when an individual works for himself and not for any organization. Self-employment is fantastic because you have a lot more freedom and you get to be your boss. When you are self-employed, your success or failure depends upon you, and the amount you earn is personified in the kind of risk and responsibility you are willing to take.

If you are selling a product or service for a company and making the commission on your sales, you are, in essence, employed and not self- employed. When you are an employee, you are accountable to report to the boss and follow the rules. While you may be content with your salary, there is a limit to earning when doing a job. When you are self- employed, you can make as much money as you want when working.


C. Wasek

Love to do some charity work. Have a passion for writing and do it in my spare time

C. Wasek, Philanthropist, Post Graduate, Corpus Christi

Answered Aug 22, 2019

There is a big difference between being self-employed and an employee. The main difference is that self employed refers to someone who works for themselves. Usually this person has a business that they do. They take risks because when you are self-employed you must pay a lot of taxes to the government when it is time to do that. Second, you must also learn to balance your money because a company isn’t going to do that.

An employee, on the other hand, works for a company and does not have to worry about paying taxes because the company usually pulls the money for the taxes out of each paycheck that it gives the worker. The main difference between being self employed and being an employee is who that person works for.


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