You have chosen to work as an independent entrepreneur. This tells us that freedom, flexibility and divert are important factors to you in your career. Less attractive factors involved with such independence are the associated risks such as illness, gaps between employed projects and clients who don’t want to pay (on time). In collaboration with EasyStaff, this blog explains the ins and outs of working through a payroll company to help eradicate such risks.
A payroll company is essentially a business that is specialized in the employment of professionals. Payroll companies can be hired by organizations of all sizes, including independent entrepreneurs, to take care of the employment process of their employees. In the case of freelancers and consultants, this will be themselves.
When you work as a freelancer or contractor, it is of the utmost importance to remain compliant with all of the applicable local legislation, such as tax rules, Professional Indemnity insurance, etc. (For more information on key compliance areas, click here.) As these legislations tend to change on a regular basis, many independent entrepreneurs choose to work through payroll companies such as EasyStaff, who are specialized in these payroll legislations.
As a freelancer, when you work through a payroll company, that company formally employs you. This offers the possibility of combining the freedom of your own business with the administrative ease of working as a salaried employee. You no longer have to bother about payments by debtors and you are automatically insured against illness and impairment. You do not need a Declaration of Independent Contractor Status (VAR) or a registration with the Chamber of Commerce. At the same time, you retain the freedom to decide for yourself who you want to work for and when. Naturally, you determine your fees in consultation with your clients.
The benefits of working through a payroll company, such as EasyStaff, are:
- Complete freedom in doing business, without administrative overheads
- Prefinanced salary and where possible, insured debtors
- Insured for Sickness Benefits Act, Unemployment Insurance Act and Work & Income (Capacity for Work) Act
- No Declaration of Independent Contractor Status (VAR) required
- One go-to person for any questions you might have
- Minimal – to – no start-up costs, depending on your payroll company
- Collaboration can be ended at any time, free of charge.
Making the decision on whether to work through a payroll company or not, depends very much on your personal situation. For any additional advice on the decision, feel free to get in touch with one of our consultants at Panda International on +31 (0)20 20 44 502.
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