Finnish company Employee vs Contractor - the numbers

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Karelia
Posts: 3
Joined: Wed Jan 11, 2017 6:03 am

Finnish company Employee vs Contractor - the numbers

Post by Karelia » Wed Jan 11, 2017 6:35 am

Hi All,

This has been touched on before, but looking for a few quick fire answer to help. Vero, tried, I can't fill out much as I'm not in Finland yet.

EMPLOYEE ( Married - wife not working + 1 baby/ in Helsinki )

5,500 euro gross per month - rough NET figure?

Can we receive child benefits 100e + 340e per month?

CONTRACTOR ( Married - wife not working + 1 baby/ in Helsinki )

7,000 euro gross per month - rough NET figure?

Do we lose child benefit entitlement with this?
Do we lose Finish pension?
Do we lose *free* Finnish healthcare?

Thanks



Finnish company Employee vs Contractor - the numbers

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Upphew
Posts: 10748
Joined: Tue Apr 08, 2008 10:55 pm
Location: Lappeenranta

Re: Finnish company Employee vs Contractor - the numbers

Post by Upphew » Wed Jan 11, 2017 12:08 pm

Karelia wrote:Hi All,

This has been touched on before, but looking for a few quick fire answer to help. Vero, tried, I can't fill out much as I'm not in Finland yet.

EMPLOYEE ( Married - wife not working + 1 baby/ in Helsinki )

5,500 euro gross per month - rough NET figure?

Can we receive child benefits 100e + 340e per month?

CONTRACTOR ( Married - wife not working + 1 baby/ in Helsinki )

7,000 euro gross per month - rough NET figure?

Do we lose child benefit entitlement with this?
Do we lose Finish pension?
Do we lose *free* Finnish healthcare?

Thanks
If you are employed your tax % is something like 36-37% (Helsinki, not member of church, married, one kid, yearly wage calculated as 12,5*5500 rounded to 70k)
If you bill as contractor, then you deduct vat (probably 24%), then all the stuff you must pay as employer (about 20% as per ukko.fi/hinnasto), then your tax and pension stuff (prolly something like 29% if you want to have same income as an employee).
http://google.com http://translate.google.com http://urbandictionary.com
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Karelia
Posts: 3
Joined: Wed Jan 11, 2017 6:03 am

Re: Finnish company Employee vs Contractor - the numbers

Post by Karelia » Fri Jan 13, 2017 5:23 am

Thanks upphew though I'm a little lost with the contractor part, if bill is 7,000 euro, what will the net amount be roughly?

Upphew
Posts: 10748
Joined: Tue Apr 08, 2008 10:55 pm
Location: Lappeenranta

Re: Finnish company Employee vs Contractor - the numbers

Post by Upphew » Fri Jan 13, 2017 12:44 pm

Karelia wrote:Thanks upphew though I'm a little lost with the contractor part, if bill is 7,000 euro, what will the net amount be roughly?
Persons don't bill. Companies add always VAT to their bill (exceptions apply) thus your bill will read 5645,16 + 1354,84 VAT 24%. Government takes the VAT, your company takes the rest, from which it pays taxes, insurances, wages etc. As you can read numbers, check the ukko.fi I linked. Bill reads 1240, you'll get 545,48. That service takes 5% form VATless price. How much you would pay for all the company stuff? 5%? Maybe less, but you'll get some ball park figures if you extrapolate from ukko.fi numbers.
http://google.com http://translate.google.com http://urbandictionary.com
Visa is for visiting, Residence Permit for residing.

Karelia
Posts: 3
Joined: Wed Jan 11, 2017 6:03 am

Re: Finnish company Employee vs Contractor - the numbers

Post by Karelia » Mon Jan 16, 2017 5:47 am

Thanks for that upphew, I tried the calculator on ukko it's looking like from 7000 euro I would receive around 3900, although
Ennakonpidätysprosenttisi I left blank as it didn't translate....what is this for?

Upphew
Posts: 10748
Joined: Tue Apr 08, 2008 10:55 pm
Location: Lappeenranta

Re: Finnish company Employee vs Contractor - the numbers

Post by Upphew » Mon Jan 16, 2017 3:20 pm

Karelia wrote:Thanks for that upphew, I tried the calculator on ukko it's looking like from 7000 euro I would receive around 3900, although
Ennakonpidätysprosenttisi I left blank as it didn't translate....what is this for?
Your tax percentage. That ukko.fi is basically umbrella company. Your billing would be quite high to use that kind of service and one (vero.fi included) could argue that you aren't contractor but an employee.
http://google.com http://translate.google.com http://urbandictionary.com
Visa is for visiting, Residence Permit for residing.


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