More people than ever are choosing self-employment. Whether you’re freelancing, consulting, or running your own business, working for yourself brings freedom and flexibility, but it also means taking charge of your own benefits.
If you’re self-employed, there’s no HR department handling your taxes, insurance, or retirement plan. You have to build that safety net yourself.
In this article, Remote walks you through the key self-employment benefits you should know about, and how to use them to support your independent career.
What counts as self-employment?
Self-employment means working for yourself, not for an employer, which can take many forms. You might work with clients on a project basis, offer specialized services, or run your own business entirely. Instead of receiving a paycheck from a company, you manage your own income, choose who you work with, and take care of things like invoicing, scheduling, and expenses yourself.
This category includes a wide range of professionals, such as:
- Freelancers (writers, designers, developers, etc.)
- Independent consultants in fields like HR, marketing, or finance
- Gig workers using platforms like Uber, Upwork, or TaskRabbit
- Content creators and influencers monetizing digital platforms
- Solo entrepreneurs and small business owners
In most countries, being self-employed means you're responsible for managing your own taxes, insurance, retirement savings, and business administration, even if you work regularly with the same clients. Some jurisdictions may require you to register a business, while others recognize individuals as sole proprietors by default.
Tax benefits for self-employed workers
One of the biggest financial upsides of self-employment is the ability to deduct legitimate business expenses from your taxable income. These deductions can make a significant difference in how much tax you owe — when you understand what qualifies.
Common tax deductions include:
- Home office costs: A percentage of your rent, utilities, internet, and even property taxes, based on the space used exclusively for work.
- Business equipment and tools: Laptops, phones, software subscriptions, and even office furniture can qualify if used primarily for business.
- Professional services: Fees paid to accountants, tax advisors, legal consultants, or virtual assistants.
- Business travel and meals: Transportation, lodging, and meals related to client work or conferences.
- Health insurance premiums: If you pay for your own coverage, these premiums are often fully deductible — a valuable benefit for self-employed workers.
- Retirement plan contributions: A person who is self-employed can open tax-advantaged retirement accounts like a Simplified Employee Pension (SEP) IRA or a Solo 401(k). These plans allow you to contribute a portion of your income toward retirement while reducing your taxable income for the current year. Contribution limits are often higher than traditional employee plans, making them a powerful tool for saving.
Health insurance for self-employed professionals
Unlike salaried employees, self-employed workers are responsible for securing their own health coverage. While this can feel overwhelming at first, there are several accessible options depending on your location, budget, and needs:
- Government marketplace plans: In many countries, public health insurance exchanges offer individual plans with subsidies based on income.
- Private insurance providers: Great for those who want more plan flexibility, coverage options, or shorter wait times.
- Freelancer and professional associations: Some industry groups offer access to group plans or discounted partner coverage.
- Health Savings Accounts (HSAs): If you choose a high-deductible health plan, you may qualify to open an HSA, letting you save pre-tax money for medical expenses. In several regions, including the US, health insurance premiums are tax-deductible if you’re self-employed, helping offset the cost of monthly premiums and out-of-pocket care.
Retirement plans for self-employed professionals
Just because you work for yourself doesn’t mean you have to miss out on building a strong retirement plan. In fact, self-employed professionals often have access to higher contribution limits and more flexibility than traditional employees, if you set up the right accounts.
- Simplified Employee Pension (SEP) IRA
SEP IRA is straightforward to set up and manage, making it a popular choice for freelancers and small business owners. Contributions are made solely by the employer (which, in your case, is you). You can contribute up to 25% of your net earnings from self-employment, with a maximum annual contribution limit that is adjusted periodically to account for inflation. - Solo 401(k)
Designed for self-employed individuals with no employees, the Solo 401(k) allows you to contribute both as an employee and as an employer. This contribution structure enables higher total contributions compared to other plans. The employee contribution limit is subject to annual adjustments, and additional catch-up contributions are allowed if you're aged 50 or older. -
SIMPLE IRA (Savings Incentive Match Plan for Employees)
SIMPLE IRA is suitable for self-employed individuals and small businesses with up to 100 employees. It allows both employee salary deferral contributions and mandatory employer contributions. The employee contribution limit is adjusted annually, and catch-up contributions are available for those aged 50 and above.
Keep in mind that contribution limits are subject to change annually due to inflation adjustments and legislative updates.
Income protection for self-employed workers
When you're self-employed, you're not just responsible for earning income, you're also responsible for protecting it. Building a safety net around your work can help you weather unexpected disruptions and invest in long-term growth.
Key protections and benefits to consider are:
- Disability insurance: Provides income replacement if you’re unable to work due to illness or injury. Short-term and long-term policies are available, and some providers cater specifically to freelancers and gig workers.
- Professional liability insurance: Also called errors and omissions insurance, this is especially useful if you offer consulting, design, tech, or other services where mistakes could lead to client losses or legal claims.
- Life insurance: If you have dependents or outstanding financial obligations, a term life insurance policy can help ensure your loved ones are protected.
- Professional development: Courses, certifications, and business tools that improve your skills or services are often tax-deductible — and an investment in your long-term success.
Taking advantage of these benefits helps reduce financial risk and reinforces your business stability as an independent professional.
Extend your self-employment benefits across borders
Building a self-employed career means more than just doing great work — it means managing your own taxes, insurance, retirement, and income protections. And while these self-employment benefits are manageable when you're working locally, things get a lot more complex once you cross borders.
Working with international clients comes with added challenges:
- Tax obligations in multiple countries
- Local labor laws and contractor classification risks
- Unfamiliar contract terms and intellectual property rules
- Delays and fees in cross-border payments
- Risk of non-compliance — for both you and your clients
Remote Contractor Management is designed specifically to support independent professionals like you. Whether you operate as a sole proprietor or through an LLC, Remote helps you stay compliant, get paid on time, and protect your work.
Sign up as a self-employed professional or explore Remote Contractor Management today.