pension contributions retroactively?

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grani2014
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Joined: Mon Oct 13, 2014 12:41 am

pension contributions retroactively?

Post by grani2014 » Fri Sep 28, 2018 4:46 pm

Hi,

I have lived some time in Finland working free lance as a translator, but without my own business, i.e., my employers have paid my taxes but not my pension, which has apparently been my responsibility.

Now I am told that I may have to pay some 25,000 euro retroactively in contributions for the last two years. This is just beyond my means. Does anyone know anything about this?

Thanks



pension contributions retroactively?

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Beep_Boop
Posts: 2067
Joined: Tue Oct 12, 2010 8:29 pm
Location: Niflheim, Suomi

Re: pension contributions retroactively?

Post by Beep_Boop » Fri Sep 28, 2018 6:01 pm

Unless you've been making 200,000 per year* as a freelance translator, that amount for only pension contribution makes absolutely no sense. Either the information you received is inaccurate, or you (or your ex-employer) is omitting something.

* Pension contribution is 6.35%. For 25,000 to be your pension contribution for two years, you have to be making ~ 196k/year.
Every case is unique. You can't measure the result of your application based on arbitrary anecdotes online.


FinnGuyHelsinki
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Joined: Sun Nov 08, 2009 8:52 pm

Re: pension contributions retroactively?

Post by FinnGuyHelsinki » Fri Sep 28, 2018 6:06 pm

Beep_Boop wrote:
Fri Sep 28, 2018 6:01 pm
Unless you've been making 200,000 per year* as a freelance translator, that amount for only pension contribution makes absolutely no sense. Either the information you received is inaccurate, or you (or your ex-employer) is omitting something.

* Pension contribution is 6.35%. For 25,000 to be your pension contribution for two years, you have to be making ~ 196k/year.
You're forgetting that also the employers pay pension contributions, which since May 1st 2017 have - at least in some cases - been the freelancer's responsibility. On average they are 17,75% in 2018.

There are multiple variables in play, I'd suggest to consult a tax lawyer, only a professional can say for sure what applies in your particular situation. In general, if the authorities are saying you have unpaid contributions, I'd be surprised if you didn't have any.


grani2014
Posts: 12
Joined: Mon Oct 13, 2014 12:41 am

Re: pension contributions retroactively?

Post by grani2014 » Fri Sep 28, 2018 7:19 pm

Well, according to one pension insurance website the contribution is 25%, so actually over a three-year period (including the present one) I would have to fork out even more. I'm wondering whether exile in England would resolve this problem!?


FinnGuyHelsinki
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Joined: Sun Nov 08, 2009 8:52 pm

Re: pension contributions retroactively?

Post by FinnGuyHelsinki » Fri Sep 28, 2018 9:11 pm

grani2014 wrote:
Fri Sep 28, 2018 7:19 pm
Well, according to one pension insurance website the contribution is 25%, so actually over a three-year period (including the present one) I would have to fork out even more. I'm wondering whether exile in England would resolve this problem!?
The combined (employer + employee) contributions are in the 25% range, depending on e.g. age. Again, for the OP, consult a lawyer, you're unlikely to get a definite answer, much less sound advice for your particular situation, here.


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Beep_Boop
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Location: Niflheim, Suomi

Re: pension contributions retroactively?

Post by Beep_Boop » Fri Sep 28, 2018 9:26 pm

FinnGuyHelsinki wrote:
Fri Sep 28, 2018 6:06 pm
You're forgetting that also the employers pay pension contributions, which since May 1st 2017 have - at least in some cases - been the freelancer's responsibility. On average they are 17,75% in 2018.
Indeed you're right. I've missed that.
Every case is unique. You can't measure the result of your application based on arbitrary anecdotes online.


betelgeuse
Posts: 2858
Joined: Thu Aug 29, 2013 1:24 am

Re: pension contributions retroactively?

Post by betelgeuse » Fri Sep 28, 2018 10:15 pm

grani2014 wrote:
Fri Sep 28, 2018 4:46 pm
Now I am told that I may have to pay some 25,000 euro retroactively in contributions for the last two years. This is just beyond my means. Does anyone know anything about this?
The debt will go to enforcement for collection and they will liquidate any assets you have to pay the debt.
grani2014 wrote:
Fri Sep 28, 2018 7:19 pm
I'm wondering whether exile in England would resolve this problem!?
At least as long as the UK is still an EU country, collection should be possible. Likely it's possible afterwards as well. In the UK, you can declare bankruptcy.

https://www.gov.uk/bankruptcy

In Finland you can consider debt restructuring.

https://www.kkv.fi/en/facts-and-advice/ ... ructuring/


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