What is the difference between wage employment and self employment?

Answer 1

Self-employed people work for themselves, and are responsible for generating their source of income, paying taxes and payroll deductions (or otherwise compensating for them), supplying their own work space/place and all services, materials, equipment, sub-contracting etc.; they might be artists or writers or business/technology consultants hired by companies. They might *also* be entrepreneurs if they started their own business, or developed a product or service. Entrepreneurs start things, invent things and introduce them to the marketplace--by definition, an entrepreneur is self-employed, but someone who is self-employed isn't necessarily an entrepreneur.

Answer 2

Wage employees are paid for services rendered and their work is strictly monitored by their employer. Their pay can be in the form of salary, hourly, or commission; but it must meet the state minimum hourly wage. Additionally, the company holds taxes out of these employees' paychecks. Self employees on the other hand are not as closely monitored by the companies that they are contracted with. They often receive work on project basis and are not required to meet the state minimum hourly wage. They are required to pay their own taxes.