Employer's tax

What is Employer tax and why are you seeing this on your invoice?

Simply put, employer tax is a tax that goes into financing the Norwegian national insurance (folketrygden). It is an important part of the Norwegian welfare state, and helps to ensure that everyone has access to important services when they need them, such as pension and sickness benefits.

When PayoutPartner pays out salary after tax, it is mandatory for us to set aside employer tax and send it to the tax authorities. When you take work as a freelancer, you are not directly employed anywhere. When we pay salary through our platform to you, our freelancer agreement applies at each invoice and payout, and employer tax is a part of this process. As such, it becomes a part of the invoice you see on your page and the payout that you get through PayoutPartner.

The percentage varies between 0 and 14,1% based on where the company's offices are located. PayoutPartner is registered in Oslo, where the employer tax is 14,1%.

Please see the illustration below, where we use 10 000 NOK as an example:

See what the difference is if you use your own company va. if you get paid salary after tax:

• Company: In some cases, employer tax does not apply. One of these cases is if the work is performed by a company. This means that if you use PayoutPartner to get paid to your sole proprietorship or AS, employer tax is not deducted. Be aware, however, that through your company, you may end up in a position where you have to pay employer tax.
• Salary: Employer tax is calculated based on gross payment. VAT and PayoutPartner's administration fee are deducted when calculating employer tax. The employer tax also gives you certain social benefits.

When you invoice your customer 100 NOK from your company, you will get 100 NOK directly to your bank. Then you choose your own salary after removing the costs for running your own business and pay taxes on that.

When you invoice someone 100 NOK via our salary service, then we get 100 NOK in our bank. Your salary is calculated after removing the costs for running our business. We have limited our business costs to 14.1% AGA which goes to the tax office and our service fee og 4,9%.