It is important for individuals to determine whether they are an employee or self-employed. This is because when it comes to taxes, there are significant distinctions between the two.

An employed individual works under a contract of service for his employer. In return for his service, the employer will pay a salary to the employee. All income derived by an employee from his employment are taxable unless it is specifically exempted.

A self-employed individual may be a sole-proprietor or a partner in a partnership. His income is derived from business which may be from the buying and selling of goods or provision of services. All self-employed persons must also compute and file their business income as this are taxable too.

Determining whether you are employed or self-employed


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