State goes to focus on “employing tradesmen”

The state is going to focus on “employing tradesmen”. Are we in for a new Eldorado? As part of the December 2023 consolidation package, Parliament approved an increase in the health insurance premium rate for both sole traders and employees from 14% to 15%. Admittedly a marginal change, but textbook in revealing the incoherence of the state’s policy on the subject of “employing freelancers”. Let’s compare the years 2023 and 2024 with respect to this change (other ceteris paribus) for an FO who wants to have €2,000 in net: 2023: 🚩 Employer’s cost for TPP: €3 683
🚩 cost of the “employer” for the office trade: EUR 2 330 Year 2024 : 🚩 Employer’s cost for TPP: EUR 3 710 (increase of EUR 27)
🚩 Employer’s cost for office trades: EUR 2 336 (increase of EUR 6)* *This disparity in favour of sole traders arises because for the office tradesman the taxable amount for contributions is reduced by the flat-rate expenses and the coefficient, and at the same time the higher health levy reduces his income tax. Alongside this change, the state has also increased minimum pensions (this is what generally benefits office tradesmen and not office workers). Thus, while the executive branch of the state (especially the labor inspectorate, the tax administration) wants to fight against “employing freelancers”, the legislative branch wants to encourage that “employing freelancers” with an additional monetary benefit. Perfect “checks and balances”. Slovak and no other. 😊 I gave a detailed talk on this topic at the Highgate Law & Tax conference on the shvarc system in April (contact Alexandra Rafajova if you want the full recording). Among other things, there we also looked at the boundaries of when a sole trader does and does not. As this topic is hotter today than it was in April, the conference should probably be repeated. Unfortunately, we are not that flexible, so for the benefit of the addressees of this topic, I have summarised at least some of the relevant legal, tax, levy and social contexts in my next newsletter. In general, I try to write about relevant practical legal and tax topics. That’s why it is so aptly titled “Can I put my watch in expenses?” If you like it, I’ll be happy for a “subscription.”