Frequently asked questions

1. What is light entrepreneurship?

Light entrepreneurship is enterprise that does not necessarily require your own Business ID. As a light entrepreneur, you don’t need an accountant or other bureaucracy to add to your everyday life. Palkkioplus takes care of such things for you.  All you have to do is enter your billing information into the system – we’ll take care of everything from there until you receive the compensation owing to you in your account. It’s easy as pie!

A light entrepreneur is equated with entrepreneurship by law.

 

2. In what sectors can I work as a light entrepreneur?

You can use the light entrepreneur service in almost any industry. Some areas requiring a licence, such as the care sector, are excluded. 

Please note, however, that certain industries have special requirements for insurance.

3. Does the light entrepreneur have to sign a contract with the client?

We recommend that the light entrepreneur always concludes an assignment agreement for the performance of the work. At least the parties to the agreement, tasks to be done, schedule and compensation for the work, etc., should be agreed upon.

4. Does light entrepreneurship count towards the employment requirement for earnings-related unemployment allowance?

Light entrepreneurship is treated as enterprise, so when the work is performed by a light entrepreneur, the employee fund does not accumulate the earnings-related daily allowance for work required by the employment condition.

If the work is full-time, however, a light entrepreneur can become a member of the Self-Employed Persons’ Unemployment Fund.

5. Are light entrepreneurs insured?

Light entrepreneurs working as such through the Palkkioplus service enjoy valid liability and accident insurance. Fennia Mutual Insurance Company acts as the service-based insurance company partner.

Liability insurance ensures situations where a light entrepreneur is liable for the damage caused while carrying out his or her work. Accident insurance ensures access to the treatment of a light entrepreneur in the event of a sudden, unforeseeable accident caused by an external factor while performing his/her work.

The insurance company always makes claims decisions on a case-by-case basis in accordance with its insurance terms and conditions.

6. What is value added tax?

Sales tax is a consumption tax added to the price of a service or product. In principle, value added tax (VAT) must be invoiced for work carried out through the Palkkioplus service.

This is good to remember when pricing the service. The most common VAT rate is 24%. In some sectors, however, a different tax rate applies. Here’s an example of reduced VAT rates:

  • Food products, animal feed, restaurant and catering services: 14%
  • Sports services, accommodation services, television and public broadcasting services: 10%

Read more at vero.fi

7. Do I have to report to the Incomes Register?

The Incomes Register is an electronic database maintained by the Tax Administration, in which, for example, all earned income is reported.

The Palkkio+ takes care of the Incomes Register report for you, so you don’t have to worry about incomes register reports.

8. Can I deduct work-related expenses from my taxes?

You can apply for a tax deduction from the tax authorities for the expenses incurred in connection with the work. Since as a light entrepreneur you work as a private person, you can apply for a tax deduction for personal taxation on tools such as materials linked with computers, professional literature, etc., that you need in order to do your light entrepreneur work.

You can also apply for a tax deduction for your Palkkio+ service fees.

Remember that the tax decision is always made by the tax authorities.

9. What do the different service rates mean?

Palkkio+ Platinum is the service price offered by our partner unions. When you are a member of one of our partner unions, you may use the service at its best even without a service charge!

Palkkio+ Gold is a specially priced membership service offered by Member+. When you are a member of an Akava union, you will receive, at minimum, access to the service at Palkkio+ Gold prices.

Palkkio+ Basic is the service price offered to any user regardless of trade union membership.

Additional costs are added to all of our service prices to cover other expenses such as insurances

10. Can I invoice my work with my own Business ID?

In the Palkkio+ service, you can invoice work only as a light entrepreneur at this stage. Later in 2023, however, the service will offer the opportunity to invoice the work also as a private trader.

11. Do I need self-employed persons’ pension (YEL) insurance?

Self-employed persons’ pension insurance, or YEL insurance, is the basis for pension and social security. You need YEL insurance if the following five conditions are met:

1. You’re between 18 and 67 years old.

2. You are self-employed for at least four consecutive months.

3. Your YEL income is at least EUR 8,261.71 per year (in 2022).

4. You work for your own company.

5. You live in Finland.

12. Can my client get a tax credit for household expenses for the work I do?

Palkkio+ invoicing entitles a tax credit for household expenses in accordance with the tax authorities’ specifications. Remember to separate the share of work and material expenses on the invoice. For more information about the tax credit for household expenses, visit vero.fi.

1. What is light entrepreneurship?

Light entrepreneurship is enterprise that does not necessarily require your own Business ID. You will receive an invoice for the work you have commissioned through the Palkkioplus service. The service payer receives their remuneration after the invoice has been fully paid.   

2. In what sectors is it possible to work a light entrepreneur?

You can use the light entrepreneur service in almost any industry. Some areas requiring a licence, such as the care sector, are excluded. 

In addition, from the point of view of insurance cover, it is necessary to ascertain whether the work tasks in your industry require special insurance solutions for the commissioning of work. 

3. Are light entrepreneurs insured?

Light entrepreneurs working as such through the Palkkioplus service enjoy valid liability and accident insurance. Accident insurance ensures access to the treatment of a light entrepreneur in the event of a sudden, unforeseeable accident caused by an external factor while performing his/her work. Liability insurance ensures situations where a light entrepreneur is liable for the damage caused while carrying out his or her work. The insurance company always makes claims decisions on a case-by-case basis in accordance with its insurance terms and conditions. There is also always good reason to ensure in advance that the insurance cover covers the job in question. The insurance company always makes claims decisions on a case-by-case basis in accordance with its insurance terms and conditions. Fennia Mutual Insurance Company acts as the service-based insurance company partner.

4. Can I get a tax credit for household expenses for the work performed?

You can receive a household deduction for certain work done at home and in a leisure home. The maximum household deduction is up to €3,500/year per person in 2022. The deductible is €100. Read more about the topic on vero.fi

5. Does commissioning work cost anything?

The assignment commissioned through the Palkkio+ service is totally free of charge to the work orderer. However, you must register for the service to allow you to offer a job through our service.

6. What are my obligations as the client?

Palkkio+ will take care of all official obligations on your behalf. After the work order and instructions, you only have to pay the invoice you received for the Palkkio+ service. We’ll take care of everything else.

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