What constitutes self-employment?

[d1more]

What is the name of your state? IN

My daughter works for different agencies throughout Indiana. The agencies have a contract with businesses and the agency calls her...she does the work and is paid a portion of what the agency gets from the business.

She is being told that she is self-employed. I don't get it. Is a maid considered self-employed when she is sent by an agency to clean someone's house, a field laborer when he goes out from agencies?

When she went to a well-known tax preparation service, they said she had to file as self-employed. They, however, have been known to make mistakes ocassionally.

How exactly does Federal law define self-employment?

[ajwrighter]

Originally Posted by d1more

What is the name of your state? IN

My daughter works for different agencies throughout Indiana. The agencies have a contract with businesses and the agency calls her...she does the work and is paid a portion of what the agency gets from the business.

She is being told that she is self-employed. I don't get it. Is a maid considered self-employed when she is sent by an agency to clean someone's house, a field laborer when he goes out from agencies?

When she went to a well-known tax preparation service, they said she had to file as self-employed. They, however, have been known to make mistakes ocassionally.

How exactly does Federal law define self-employment?

Its the same thing when a person is contracted to do construction work or a roofer is contracted to do roofing. You are being paid for your services and no one elses. The agency simply points you in the right direction and helps you out sometimes for a hidden fee.

[tdavidl]

check out this q&a link...

[url]http://www.irs.gov/govt/tribes/article/0,,id=134976,00.html[/url]