Typically, fees paid to corporate directors who perform minor or no services for the corporation are reported on a Form 1099-MISC, Miscellaneous Income, and are subject to self-employment tax because such directors are not employees of the corporation, as described in Regs. Sec.

Are you self-employed if you are a director?

Is a director self-employed? Company directors are not considered to be self-employed in relation to companies where they hold office as directors. Although they can be both directors and employees, it is not possible to be a director and also self-employed for the same company.

Can you be a director but not employed?

Being a director does not, of itself, make that person an employee of the company. A directorship is an office, not necessarily an employment. ... Subject to the company's articles, the board has power (as part of its general powers of management) to award service contracts to directors and others.