We explain the differences between employees and self-employed workers, as well as the types of employees that exist.
Having an employment contract and carrying out other self-employed economic activities is compatible.
We all have a general democratic republic of the congo email list
idea of the differences between a self-employed person and an employee. But how do their respective Social Security contribution regimes differ? How do each declare their income? How do they organize their work? In this post, we give you all the keys that differentiate these two professionals.
What is an employed worker?
While the self-employed are generally not bound by an employment contract, employees work under a contract and under the guidance of a company. The main characteristics that define employees are:
They are subject to schedules, breaks and workplace determined by company management, regardless of whether they have worked occasionally or sporadically.
He is 100% dependent on his employer, so it is the latter who provides him with the means to carry out his activities.
He does not participate in the profits or risks of the company's activity, so he receives the previously agreed salary.
What is a self-employed worker?
As defined by Social Security, a self-employed worker (also known as a freelancer) is a natural person who regularly, personally and directly carries out a professional activity for profit.
Its main features include:
The self-employed person may occasionally use the paid services of other people, whether or not he or she is the owner of an individual or family business, which can lead to confusion with respect to the individual entrepreneur. In principle, he or she holds the title to an establishment open to the public, either as the owner or tenant of the premises.
His liability is unlimited, so he is responsible for his professional activities with all his assets, so that the line separating his personal and business assets is blurred.
Unlike an employed worker, he or she is not subject to an employment contract.
Types of self-employed in Spain
There are factors related to the type of activity, management or contributions of self-employed workers that give rise to different types of self-employed workers.
1. Self-employed
These professionals manage a small physical business or work in professional activities subject to IAE . Those belonging to this group pay contributions by modules.
2. Liberal professionals
This includes professionals who are members of a professional association, such as doctors, lawyers or psychologists, and non-members of a professional association, such as editors or programmers. These professionals withhold personal income tax from their invoices . However, they generally do so if the recipient of said invoices is a legal entity.
