self-employment

American  

[self-em-ploi-muhnt, self-] / ˈsɛlf ɛmˈplɔɪ mənt, ˌsɛlf- /

noun

1. the act or fact of being self-employed.

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Usage

What does self-employment mean? Self-employment is the state of being self-employed—earning one's main income by getting paid directly for one’s work, such as by owning one's own business, as opposed to being an employee and getting paid by an employer. Self-employment is typically used in a way that refers to a person’s primary, full-time way of earning income—as opposed to working as an employee and doing freelance work on the side, for example. The term self-employed is often used by and applied to people who consider themselves business owners, freelancers, and entrepreneurs. Example: I love self-employment—my boss is amazing.

Etymology

Origin of self-employment

First recorded in 1735–45

Example Sentences

She started by asking AI to explain topics like self-employment tax and estimated payments, then she asked it to apply those rules to her situation.

From MarketWatch • Feb. 17, 2026

The self-employment tax rate is 15.3% for 2023 and 2024.To avoid an underpayment penalty, you’ll generally need to owe under $1,000 in taxes after minusing any withholdings and refundable tax credits.

From Seattle Times • Jan. 16, 2024

As a hybrid, it wasn't the worst gas guzzler, but fuel costs — in addition to a hefty 15% state self-employment tax — ate a chunk of my already modest earnings.

From Salon • Sep. 10, 2022

The self-employment tax, paid in lieu of the payroll tax that employers split with employees, is 15.3 percent, with 12.4 percent going to Social Security and 2.9 percent to Medicare.

From New York Times • Aug. 2, 2019

On top of that, you will owe self-employment tax, which is essentially Social Security and Medicare taxation for people in your situation.

From Encyclopedia.com • Feb. 13, 2018