What is the difference between having a company and receiving salary?
Salary
When you receive salary, you only need to deal with PayoutPartner. Being a wage earner is very easy and not very stressful. This is because PayoutPartner handles taxes, fees and reporting for you. You do a job and get money straight into your account without having to worry about administrative work.
Important: For every 100NOK invoiced (+ VAT if applicable), your salary after tax will be 83,35NOK. This could be higher if you have driving costs or documented receipts.
Our administration fee is 4,9% of amount ex. VAT.
Company
Being a freelancer is a separate lifestyle. Some may be uncertain if they will continue with it or not. Therefore, we recommend that you start with being a wage earner at the beginning of your career. Many people think that this is the best solution because you do not have to think about any administrative work at all and you can focus entirely on the job you are doing.
If you decide or have already decided that you want to continue working as a freelancer, it may make sense to have a company (ENK / AS). The reason why you are left with more money is because you do not pay employer's contribution and you have to do most of the administrative work yourself. Fortunately, we help you create invoices and if you work for one of our partner companies, we automatically create the invoices for you.
Important: For every 100NOK invoiced (+ VAT if applicable), the customer will pay the full amount to your account.
We will not deduct any tax, and we will not report VAT to the tax authorities.
See the table below for a detailed overview of expenses and payments associated with salary after tax, sole proprietorships and AS.
| Salary |
Sole proprietorship |
- Amount: The full amount paid by the client is the basis for salary calculation
- Employer's tax: 14.1% deducted from the amount paid by the client
- Public occupational pension (Folketrygden): Yes
- Compulsory occupational pension: No
- Sick pay: 100% salary from day 17 by NAV
- Unemployment benefit: Yes
- Holiday pay: No
- Cost of salary service: Up to NOK 100,000: 4.9% of the amount paid by the client. Over NOK 100,000: 0%
- Invoicing (reminders, EHF, Vipps, etc.): 0 NOK
- Accounting and accounting system: 0 NOK
- Income statement: 0 NOK
- Deduction for costs and VAT: No
- Administration: Nothing, PayoutPartner has got you covered!
|
- Amount: You can choose to take less salary than what is paid by the client
- Employer's tax: 0%
- Public occupational pension (Folketrygden): No
- Compulsory occupational pension: No
- Sick pay: 80% salary from day 17 by NAV
- Unemployment benefit: No
- Holiday pay: No
- Cost of salary service: Included in the cost of the accounting system/accounting
- Invoicing (reminders, EHF, Vipps, etc.): 5-30 NOK per invoice*
- Accounting and accounting system: 169-3500 NOK per month*
- Income statement: From 990 NOK per year
- Deduction for costs and VAT: Yes
- Administration: Invoicing, accounting, reporting to Altinn, travel bills, refunds, etc.
|
| Salary from your own AS |
Dividend from your own AS |
- Amount: You can choose to take less salary than what is paid by the client
- Employer's tax: 14,1% of your salary amount
- Public occupational pension (Folketrygden): Yes
- Compulsory occupational pension: 2-4% of your salary amount
- Sick pay: AS must pay 100% salary from day 1-16, NAV covers 100% salary from day 17
- Unemployment benefit: Yes
- Holiday pay: 10,2-12% of your salary amount
- Cost of salary service: Included in the cost of the accounting system/accounting
- Invoicing (reminders, EHF, Vipps, etc.): 5-30 NOK per invoice*
- Accounting and accounting system: 169-3500 NOK per month*
- Income statement: From 1290 NOK per year
- Deduction for costs and VAT: Deductions for AS, not personal expenses
- Administration: Invoicing, accounting, tax notification and accounting reporting for AS, reporting to Altinn, travel bills, refunds, etc.
|
- Amount: No salary
- Employer's tax: 0 kr
- Public occupational pension (Folketrygden): No
- Compulsory occupational pension: No
- Sick pay: No
- Unemployment benefit: No
- Holiday pay: No
- Cost of salary service: Included in the cost of the accounting system/accounting
- Invoicing (reminders, EHF, Vipps, etc.): 5-30 NOK per invoice*
- Accounting and accounting system: 169-3500 NOK per month*
- Income statement: From 1290 NOK per year
- Deduction for costs and VAT: Deductions for AS, not personal expenses
- Administration: Invoicing, accounting, tax notification and accounting reporting for AS, reporting to Altinn, travel bills, refunds, etc.
|
* Cost depends on the size of the company and whether you do the invoicing and accounting yourself or use an accountant
