It is important to differentiate between someone who is an employee and someone who is self employed due to differences in deduction, benefit and furthermore their tax obligation. Tax obligation - Once employee earn their income, taxes are automatically deducted from their paycheck by their employers. Employees are not responsible for this however self employers have to do this on their own tax calculation. Employees get more benefits like holiday pay, sick leave but cant claim deductions unlike self employers. To avoid any confusion and mitigate any mistakes, this differences are to be considered so each individuals are being taxed fairly