Examples of Self-Employment Determinations

Day Care Provider

A client may be self-employed as a provider of child care. It does not matter whether or not the individual is licensed. Examples of this are as follows:

A woman advertises (on bulletin boards, in newspapers, by word of mouth, etc.) that she will keep children in her home for pay. She provides snacks and toys as well as care and supervision. She is self-employed.
A woman babysits in the child's home for pay. She does not provide anything except her services. She may be “on call” for several persons. She is an employee with wages, possibly several employers, but is not self-employed.

Housekeeper

Individuals are self-employed if they offer housekeeping services to the general public, performing specific jobs for specific pay, and providing their own supplies and equipment.

If the housekeeper routinely works in the employer's home, using the employer's equipment and supplies, that individual is an employee with wages.

Room and Board

All income from room and board or room rental is considered self-employed income. The actual amount received minus any allowable business expenses is counted as earned income to the AU. Refer to Income from Property.

Salesperson

A person who buys products for resale (including buying raw materials for manufacture of products for sale), or accepts products on consignment for sale is self-employed.

A person who sells products or services for another, or for a business, is an employee, regardless of whether a salary, commission, or some combination is received.

Independent Production

Independent production is making merchandise independently from the constraints of another regarding work conditions, hours worked, etc. Such production usually consists of craft type articles, such as pottery, leather goods, art work, sewing, etc., and will usually, but not always, be done in the person's home.

If an individual buys raw materials and retains the sales profit, this person is self-employed, whether the product is sold to the general public or to a person or company.

If an individual produces a product from materials provided by others and is paid a fixed amount (piece work rates, salary, etc.), this person is an employee.

Independent Contractors

An independent contractor is a business or individual who provides goods or services to another entity under a specific or implied contract or agreement and who is not subject to the other’s control, or right to control, the manner and means of performing the services. Earned income generated by a Independent contractor is treated as self-employment income.

Examples of various types of independent contractor jobs include, but are not limited to, the following:

Recyclers,
Tutors,
Exotic Dancers,
Music teachers,
Hair stylists that pay space rent,
Tattoo artists that pay space rent, and
Rideshare Drivers (i.e. Uber, Lyft, HopSkipDrive,and etc.)

Odd Jobs

A person may do one or several odd jobs, on a regular or irregular basis, and may or may not offer services to the general public. Personal tools or equipment (as opposed to supplies and materials) may or may not be used.

Individuals who provide their own supplies or materials are self-employed.
If the individual is specifically reimbursed for the cost of supplies or materials in addition to pay, or if supplies and materials are provided, then that individual is an employee.

Gardeners

A gardener who operates independently, uses his own tools and equipment, provides plant sprays, plant food, etc., and takes the profits or losses is self-employed.

An employee is a gardener who uses the home owner's tools, equipment, plant sprays or plant food and only provides the physical work and gardening knowledge.