Get freelance salary with tax deductions through PayoutPartner

If you've ever taken on a freelance assignment for a client, you've certainly experienced the amount of administration and paperwork that comes with getting paid as a freelancer.

The most common is to have your own business - preferably a sole proprietorship, or in some cases AS - to charge for the freelance work. Many may also think that this is the only way to get paid for freelance assignments. But it is not like that.

In this article, we want to explain what it means to get a freelance salary through PayoutPartner, and how we calculate salary payments.

🧐 What is freelance salary with tax deductions?

With PayoutPartner you can get paid for your assignments as a freelancer without having your own company. We offer freelance salary with tax deductions. This means that we take care of all tax deductions and reporting to the tax authorities, so that you can use the money you receive in your account for exactly what you want!

In practice, the process looks like this:

You invoice your customer (or we invoice them on your behalf, if the customer is one of our partners)

We ensure that all taxes are calculated, deducted and sent to the tax authorities, plus reporting

This includes: VAT, payroll tax, and employer's tax (we collect your tax card each time to get the correct deduction percentage)

PayoutPartner also charges an administration fee of 4.9% on the total invoiced sum (the lowest in the industry!)

You will be paid fully taxed and reported freelance salary

💰 How is the salary calculated?

Below you can see a simple example of how the calculation can look when we pay salaries after tax for freelancers. For the sake of simplicity, we use NOK 10,000 as an example of the sum you have worked for.

Amount incl. VAT: The sum that your customer must pay. It is the payment for your work, with VAT on top.

VAT: Value added tax is paid by your customer, and is required on most goods and services sold in Norway. VAT has slightly different rates, but is usually 25%. PayoutPartner sets aside VAT and pays this back to the state in accordance with the Swedish Tax Agency's guidelines.

Amount e.g. VAT: The sum invoiced for the work you have carried out without VAT.

Administration fee: The fee we charge to take care of the administration of the payout for you. This includes the technical solution, tax withholding, reporting and payment of taxes and fees and the transfer to you.

Employer's tax: When PayoutPartner pays wages after tax, we are obliged to set aside employer's tax (AGA), and pay this on to the Tax Agency. When you take on assignments as a freelancer, you are not permanently employed anywhere. When paying wages through PayoutPartner, our freelancer agreement applies to each individual invoicing and payment, and AGA becomes part of this process.

Gross payment: This is your gross salary, i.e. salary before tax. Payroll tax is deducted from this amount before it is paid to your account.

Tax: Your salary tax, based on the percentage we find on your tax card. Tax cards are collected and checked before each payment, so that the percentage is correct. In this calculation, we have used 26% as an example.

Payout: The sum we transfer to you, i.e. your net salary. No more administration required – this money is yours and you can spend it on exactly what you want! We take care of all reporting for your annual tax return.

✅ Why should you use freelance salary through PayoutPartner?

The obvious advantage of letting PayoutPartner take care of tax and reporting for you is that you don't have to think about it yourself. You can also save money by not having to use an accountant and a separate expensive accounting program.

If you are new as a freelancer, or unsure whether you will work full-time with freelance work, we recommend going for a freelance salary with tax deductions at the beginning. Then you get the freedom to concentrate on the work, and to find out if it is something for you, before you take the step of starting your own ENK or AS.