Self Employed vs Employed
It doesn’t make much of a difference to anyone whether you are self employed or are an employee except to you. This is because most of the employment rights apply only to those who work for others rather than for themselves. Just because, you are not shown as an employee by the person who pays you for your services does not mean you are self-employed. It does not take away your employment rights, and the law cannot be deceived by such means. Therefore, knowing the differences between employed and self-employed is very necessary for a person.
Generating income for one’s family on one’s own is not every man’s cup of tea, and this is why we see more employees than self employed people. If you are selling a product or service for a company and earning through the commission on your sales, you are in effect employed and not self employed. However, there is a huge difference between selling for a company and selling for your self.
When you are an employee, you have to be there at the office on time every day, and you cannot think of spending more than a few hours every day for your family. On the other hand, setting up your office inside your home and meeting clients there gives you much more free time, and you can even spare time to play with your kids, as you are free from physical presence at a premise the whole day.
Another difference between self-employment and employment lies in the amount of responsibility and risk. When you are an employee, all the risk and responsibility lies on the shoulders of the owner of the business, and while you can be satisfied with your salary, there is a ceiling to your income beyond which you cannot expect to grow. On the other hand, in self-employment, your success or failure is dependent upon your entrepreneurial qualities, and the amount you earn is reflected in the kind of risk and responsibility you are willing to take.
You are your own boss when self-employed and, you do not need to seek permission to take a day off or to ask for leave to see a doctor for your kids. You are creating an asset for your kids when you are self employed as you can pass your asset to your kids. On the other hand, you cannot give your job to kids, do you?
Income is steady with a job, but you are not sure of your income, when self-employed. This is one reason why most people prefer to work for others rather than working for themselves. However, while there is a limit to earning when doing a job, only the sky is the limit when you are self employed.
Self Employed vs Employed
Despite there being no standard definition of self employed and employed, the difference between the employment status of a person is decided by certain factors like control over procedures and decisions, personal service or the lack of it, ownership of equipment, finances, premises etc. The answers to these pointers tell whether a person is employed or self employed.