contract for services

Quick Reference

A contract undertaken by a self-employed individual. The distinction between a contract for services (self-employed) and a contract of employment or service (employee) is fundamental in establishing the tax position. With a contract for services the person may hire and pay others to carry out the work, will be responsible for correcting unsatisfactory work at their own expense, and may make losses as well as profits.

Subjects: Accounting.

Reference entries