Self-employed entrepreneurs must prove that they do not have a disguised employment contract with one client. The Government did not consider the Employment Relationship Statement sufficient. The model agreements that professional bumblebee Wiebes came up with, the DBA Act, were postponed. Now there are new plans and the self-employed may respond to the bill Minimum remuneration for self-employed persons and self-employed persons declaration.
See https://www.internetconsultatie.nl/minimumbeloningzelfstandigen for explanation:
Minimum remuneration for self-employed persons and self-employed persons declaration
Current legislation encroaches on the government's vision for self-employed professionals and their clients. That is why measures have been announced in the coalition agreement to give these parties more certainty about the qualification of their employment relationship and to prevent false self-employment at the bottom of the labor market.
That is why the government is proposing two measures:
1. Minimum rate of € 16
2. Self-employed persons declaration
As of January 1, 2021 (ed. So you still have the remainder of 2019 + 2020)
Pretty hip of course internet consultation. We are citizens and social organizations for 6 weeks react. Then: 1. advice from the Council of State and 2. submission to the House of Representatives. Unfortunately speculaas, the bill is still dry food for which the average entrepreneur has no time. So here are the highlights that I could find, but also read other sites and sources for a broader picture:
- Minimum hourly wage € 16 is for services to companies and consumers. Intended to give entrepreneurs who work full-time a basic salary (for 40 hours of work per week / 46 working weeks per year.) This amount includes reservations for sickness, costs and disability. This amount does not include materials and 1/3 time for administration and marketing. Is indexed annually on January 1.
- Self-employment statement for + € 75 hourly wage. If you work for a rate of more than € 75 per hour, you can request a self-employed person declaration. Under certain conditions you get the assurance that if the self-employed person is assessed afterwards as an employee, there will be no additional tax for a year.
These conditions are for the entrepreneur:
- Self-employed person's declaration is part of a written agreement
- Agreement and self-employed persons declaration are signed and provided with a date
- Work does not last longer than a year
- Hourly wage of at least € 75 per hour
- Chamber of Commerce registration is stated on both
- Timely invoicing
For the client, these conditions are:
- Administration of agreement and self-declaration
- Before the assignment starts, there must also be a document in the administration with the recording of an hourly wage of € 75
- Overview in the administration after the assignment ("no later than the fifteenth day of the month following the month in which the application period ends", so ending somewhere in January means taking an overview before 15 February). It must contain: total of invoices for the period, total of labor remuneration for the period, hourly wage (again), the time linked to that labor remuneration, date of start and termination.
Specify and administer hourly wages
So if you fall under that € 75 or you do not meet all those conditions, you will receive other conditions. Primarily intended to guarantee that the minimum hourly wage of € 16 is paid:
- The self-employed person must make an estimate for each assignment of direct costs and hours, and submit it to the client. This overview must clearly state the final hourly rate.
- The self-employed person must leave a time and cost overview in the meantime and afterwards.
- The client must check those statements, which is a new administrative obligation. At the end of the assignment and per payment period, the client must prove that the assignment meets the minimum wage.
- If afterwards it appears that more direct costs or hours have been incurred, as a result of which the hourly wage then falls below the minimum rate, then the client must pay extra. Entrepreneurial risk thus partially shifts to the client.
- Assignments that last longer than a month must be invoiced and paid out monthly. You can deviate from this in writing, up to three months.
What are you allowed to invoice?
- The costs for the preparation and execution of the assignment
- The hours spent on carrying out the assignment and traveling to and from the assignment
- The transport costs incurred for the execution of the assignment
Issues that you cannot directly attribute:
- Costs and time for acquisition, administration, training and communication
- Insurance premiums, unless the insurance is only taken out for one assignment
- Costs and time for obtaining self-declaration and agreeing the assignment
- Costs for company resources or products that you use for multiple assignments
Web module must offer certainty
There will be a web module! (* does a debtor-creditor *)
This is a decision tree with question and answer (and a real algorithm) to be able to give clients certainty in advance as quickly as possible by means of a assignment statement. This declares that work is being done outside employment. There is no wage tax and social security contributions and IAB Zvw contributions.
This statement of assignment is only valid if completed truthfully and in practice as entered.
Why is the government doing this?
Picked from the explanation of the central government here:
- uncertainty among freelancers and their clients about legislation and regulations. (ed. by Wiebes)
- the growth of the group of working arms among the self-employed. 8.6 percent of self-employed households were below the subsistence level in 2017 against 1.6 percent of employees.
- It is also sometimes the case unintended competition in the labor market: in the workplace between employees and self-employed people, between small companies and self-employed people and among self-employed people.
- And the vast majority of the self-employed are not insured for incapacity for work.
Self-employed. The party that performs work or has someone else performs work for a party other than on the basis of an employment contract or appointment under public law for the other party, the client, regardless of whether the
the first-mentioned party is a natural person and irrespective of the legal form of the first-mentioned party with whom the contract for the execution of which work is performed has been concluded. This does not apply to the person whose work is subordinate to a contract concluded between parties purchase agreement. This also does not apply to those who employ one or more employees (but no directors) who, in the three months prior to the conclusion of the agreement with the client, worked on average more than 8 hours a week, or worked together, respectively .
Self-employed declaration: A declaration from a work provider and a working person that they want the legal consequences of a valid self-employed person's declaration (...) with regard to wage tax, income tax, national insurance premiums, employee insurance premiums, income-related contribution to the Healthcare Insurance Act, employee insurances and labor law apply to their employment relationship.