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A sole proprietor (i.e, the sole owner of an unincorporated business) cannot be his own employee. He can be an employerif he has other people working for him as employees, but he cannot be his own employee for legal or tax purposes.
The sole proprietorship is the simplest form of business organization. A sole proprietorship comes into existence when a single person starts to carry on business on his own, without taking steps to adopt another form of organization, such as a corporation. If you agree to cut your neighbour's grass for money each week, you are carrying on business as a sole proprietor.
A sole proprietor could enter into a contract to employsomeone else to cut your grass. But he cannot "employ himself" to do so.
Although a sole proprietor who has employees may set himself up on the payroll with his employees solely for the convenience of regularly "paying" himself, and for automatic record keeping and direct-deposit purposes, that does not make him an employee. He is still the owner of the business, and may not deduct any "compensation" he "paid" to himself as business expenses. If he does so, he should set himself up in a separate department by himself for payroll reporting purposes, so that it is easy to keep amounts paid to him separate from the amounts paid to his employees.
What else can I help you with?
Can an employee invest in his own company?
yes.
When employee uses own car and company pays gas what is the mileage?
When an employee uses own car and company pays for the gas what is the mileage reimbursement?
What is meant by employee stock ownership?
An employee stock ownership plan is what an employee of a stock would create to have a plan. On it would be how long one plans to own that stock and so forth.
When employee uses own car and company pays gas what is the mileage reimbursement?
When an employee uses own car and company pays for the gas what is the mileage reimbursement?
What are the Employee's limitation?
the significant of given limitation to employee's are for their own discipline
Is a corporation responsible for damage done by their employee to someones personal property?
not unless the employee was on company time or buisiness if the employee was on their own time the corporation is not resposable
What does it mean when an employer does not withhold taxes from an employee's paycheck?
When an employer does not withhold taxes from an employee's paycheck, it means that the employee is responsible for paying their own taxes directly to the government.
What is Employee Stock Ownership plan?
An employee stock ownership plan is what an employee of a stock would create to have a plan. On it would be how long one plans to own that stock and so forth.
What are employees limitations?
the significant of given limitation to employee's are for their own discipline
Can an employee reduce their own working hours?
Only with the employer's consent.
Can a Department of Education employee own a business in south Africa?
Yes.
Can a company own its employees ideas?
Inventions developed by employee, if made during the course of the employee's normal duties generally belong to the employer.
