Self Employed Contractors For Sss Contribution
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FAQ
If Self-Employed or Has Own Business: Barangay Business Permit. Bank Statements (dated within the last 3 months) Income Tax Return 1701. Audited Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity, and Notes to Financial Statements)
What is an independent contractor ing to Philippine law? Independent contractors are workers who provide paid services (or products) to another party. However, they are classified differently to employees, and are usually not entitled to the same benefits, such as paid leave, sick days, and minimum wage.
If you're a sole-proprietor, self-employed or a certain type of partnership*, you must fill out your T1 General, that's your standard personal income tax return. You must also complete a separate T2125 ?Statement of Business or Professional Activities?. This is where you specify: business and professional income earned.
Independent contractors are individuals who offer their services for a fee to a client/principal in the form of a business and thus they are not considered as employees but as professionals, talents, or freelancers.
As an independent contractor, you control your fees, your work hours, and how you work. Because you're self-employed, you're responsible for managing your own taxes. The T2125 tax form is a must for reporting your income and expenses as an independent contractor.
