No doubt you have heard someone say, “I’m self-employed.” What do you think of when you do?
Is it the person who takes care of your lawn? How about your massage therapist who works out of their home? And then there is the person you drop the kids off to for childcare. All of these examples might be self-employed in today’s economy. There are several new possibilities of being your own boss, which you might not think of right away. If this makes you suddenly feel that you could be self-employed, you need to talk to a qualified person, such as an accountant, to determine your tax status.
These five examples are just the tip of the iceberg regarding ways of being self-employed.
Driving for Payment
Sharing a ride or product delivery is now a widespread option for many people. Your Uber, Uber Eats, Lyft, or Skip the dishes drivers are working for themselves? They use their own vehicles, determine when they want to work and are essentially business owners.
Direct Sales
This is a job that is growing in quickly. Maybe you buy clothing that your neighbour is creating or cooking utensils from your sister’s friend. These types of sellers are independent and self-employed. Frequently, real estate agents are self-employed. This means that they are not commissioned employees and don’t have deductions withheld and noted on a T4 slip by an employer. They manage their revenue and expenses.
Contract Writing
This is another example of being the boss. This sort of work has been growing in recent years. You might be paid for each item you write, edit, optimize or review.
Online Sales
Reselling goods online has turned into a huge business. Selling items on eBay or similar websites may be considered self-employed. Any profit you make is deemed to be taxable under most circumstances. If you’re self-employed, you can deduct related expenses, such as shipping costs, to send your goods to your customer. You would need to track other costs that you pay to use them as deductions. These would help offset your income on your tax return.
Caring Services
Making extra cash by walking dogs or providing in-home daycare means there is a reasonable likelihood that you are self-employed.
If you have any questions about whether you are self-employed, contact our office, and we will make sure you are set up properly and that you receive every benefit you are entitled to.