EUR 2 000 gross vs. EUR 2 000 invoice

€2,000 gross vs €2,000 invoice =
€1,492 net vs €1,867 net =
€2,724 employer cost vs €2,000 “employer” cost That’s without social contributions. With social contributions, that net income would be €1 684 (16% effective rate). If the invoice amount was EUR 2 724 (+- same cost for the “employer”), the net income including social contributions would be EUR 2 331 (14% effective rate). And this is about €850 more than the net salary of the “employee” if he were employed (see my next newsletter for some extra details). These figures are a phenomenon of the Slovak business environment. It was not only the unrealized “Matovic tax reform” that wanted to fight against it, but also the 2nd Fico government. However, it also successfully pushed through a reduction of flat-rate expenses for self-employed persons to 40% up to a maximum of EUR 12 000. In order to then 3. Fico government increased them to 60% up to a maximum of EUR 20 000 😊 However, these figures are only part of a complex debate. This includes: 🔹 A comparison with another competitor – the one-person SRO;
🔹 Identification of the threshold (when can be a sole trader and when not);
🔹 The difference in rights and obligations under the two regimes;
🔹 Potential penalties from regulatory authorities when abuses occur;
🔹 Implications for pension, maternity and other social insurance benefits. What I fit into 25 minutes is told in our next podcast, this time with Adam Sipos (link to podcast in comments).

However, more and in more detail at our conference(https://lnkd.in/eHqtUCj4) dedicated to this topic only, where I will be together with: 👉 Martin Vlachynsky – economic analyst from INESS – Institute of Economic and Social Studies;
👉 Katarina Matulnikova – partner at Wolf Theiss and expert in labour law;
👉 Tomáš Strémy – Vice Dean of the Faculty of Law of Charles University and expert in criminal law; In addition to the above topics, we will present/discuss the following topics, for example: 🔹Economic context (i.e. macro as well as more detailed tax-tax implications, including comparison with SROs);
🔹 Can it theoretically be a criminal offence in some cases?
🔹 Setting up contracts to eliminate the risk of a “shvarcsystem”;
🔹 Issues and challenges of employment vs. freelancing. How do you feel about this?