Frequently asked questions and answers:
It’s as easy as making hay. You just fill out FLOY’s registration form on the website, after which you can log in to our service. There you fill in your detailed personal information (address, phone number, account number for salary payment, etc.) Registration is free and there is no obligation. When you start working, first fill out the start of work form in FLOY’s application and that way you are insured through us and all you have to do is roll up your sleeves.
Light entrepreneurship is suitable for everyone who wants to earn with their skills without paperwork related to entrepreneurship. Light entrepreneurship is also a great way to try entrepreneurial activities without risk. Light entrepreneurship is also suitable for side jobs or projects done alongside studies or another job. So you can invoice your work without your own social security number or company. Fast, easy and safe
Invoicing through FLOY is affordable and the pricing is clear. The service fee is charged only in connection with the premium payment, and you can combine several invoices for the same payment. The service fee is 4% of the invoice amount without VAT. For example, for an invoice of €1000 (VAT 0%), FLOY’s fee is only €40.00.
In addition, FLOY withholds for the taxman a withholding tax according to your tax rate and any value added tax, and takes care of your statutory SAVA payment. In 2022, the share of the SAVA payment is 1.34% and the share of FLOYturva is 2.5% of the VAT-excluded final amount of the invoice, it guarantees that your business is safe. You can deduct the payments withheld by FLOY as income acquisition costs in your own taxes.
Use our salary calculator to see how affordable FLOY’s service is.
Yes, you are, as long as you have registered and activated the job advertisement in our operating system.
After filling out the job application, all FLOY light entrepreneurs are insured in terms of accident, liability insurance (remember to check with our customer service that our liability insurance covers operational liability insurance for your industry) and legal protection.
FLOY has more comprehensive accident insurance for light entrepreneurs than many other invoicing service companies, which in the event of an accident at work entitles to daily allowance compensation regardless of the amount of YEL work income, if certain conditions are met. You can find more information about this in our operating system
Light entrepreneur or a person who uses an invoicing service to bill for the work he/she has done is not legally an entrepreneur, nor is she/he a wage earner. For tax purposes, a light entrepreneur is a wage earner, who may have a statutory obligation to pay YEL contributions, i.e. the entrepreneur’s pension insurance. A fixed-term employment relationship is formed for the duration of each work performance billed through the invoicing service.
In terms of labor policy and pension insurance, work done through FLOY is considered work done in an entrepreneurial manner. Entrepreneur’s pension insurance, or YEL insurance, is mandatory when all of the following conditions are met for you:
- Your earnings in 2022 are at least EUR 8,261.71 in a 12-month period.
- Light entrepreneurship through the invoicing service is recurring, i.e. you send more than one invoice or your activity through us continues for at least four months.
- You are 18-67 years old.
- You will not receive an old-age pension in accordance with the employment pension laws.
- You can also take out YEL insurance afterwards; however, it must be taken within 6 months from when the conditions for YEL insurance are met, in order to avoid a default increase.
Registering as a FLOY small business owner does not commit you to anything. You can invoice your work through us, but there is no obligation to do so. When you want to use our service – we serve. The only thing we expect you to commit to is the professional performance of the agreed task. When you have done your work and earned your reward, you can trust that FLOY will take care of the invoicing and pay your reward quickly.
YES! You can risk-test your business idea by starting FLOY as a Light Entrepreneur. You don’t have to commit to the responsibilities of an entrepreneur, you can start work right away and you can focus on utilizing your own skills instead of the paperwork war.
After registering for the service, you can create your first invoice right away. When you try FLOY Light Entrepreneurship, you won’t miss the opportunity for start-up money. If you later decide to become an independent entrepreneur, it will be much easier; you already have ready customers and experience in marketing and sales work.
If there are not enough orders for your idea on the market, as a small entrepreneur you can stop your operation quickly and completely without bureaucracy. If you start your own company and the company is not profitable, it is difficult to end it. When you started the company, you also gave up the employee’s unemployment insurance, and getting it back takes time. Termination of light entrepreneurship can be done by simply submitting a termination notice to the YEL register.
If your turnover varies seasonally or is small, FLOY’s service is a more reasonable solution. Our affordable service fee is calculated only from the invoicing and there are no running monthly costs. As an entrepreneur, the amount of fixed expenses on a monthly level can be very significant in relation to the turnover. The profitability of your own company depends on whether you have a large enough customer base that guarantees stable income and how much of the company’s administrative work has to be outsourced.
When you work as a FLOY Light Entrepreneur, you do not start your own company, but you are an employee of FLOY. This way you won’t lose the opportunity for start-up money either. If you later decide to start your own company and apply for start-up money, previous entrepreneurial activity through FLOY can be considered a favorable factor.
As a rule of thumb, we pay your fee when the billable client’s performance appears in our system. You can also agree with us whether to collect several invoices before settlement and when you want the sums to be settled. You will receive a text message about the payment of the premium. You will also receive a salary breakdown in your email with each salary payment.
You can invoice. We need a tax card at the latest when you want to get paid. The tax card should be submitted in time so that the salary payment can be made without unnecessary waiting.
How is billing done? Invoicing takes place through the Floy application, which you get the credentials for when you register.
First, you can use our salary calculator to calculate how much you need to bill in order to receive a certain amount of salary in your account. The calculator also serves as a handy aid when planning the price for your service.
In addition to your work, you can invoice travel expenses, materials, supplies, tool allowances, etc. You can directly agree the prices of these with your client. The invoiced travel expenses are not related to the maximum amounts that can be deducted in taxation according to the taxman’s instructions. However, you can negotiate freely with your client about it.
In terms of salary payment, these are not tax-deductible expenses, but are normally transferred to your salary based on the final amount of the bill. Remember to invoice VAT if necessary. For companies, the prices are stated without value added tax (e.g. 1000 euros, +VAT). For individuals, on the other hand, always at prices including VAT (e.g. 1240 euros, including VAT).
You can invoice with all available VAT rates, VAT-free invoicing and reverse VAT are also possible. Depending on your industry, the VAT on the invoice may be lower, as we invoice according to your industry’s VAT.
When announcing the selling price of the service you offer, always remember to mention whether the price includes VAT (incl. VAT 24%) or VAT-free (VAT 0%). For private individuals, prices must always be stated as including VAT.
The invoice is sent to the customer on weekdays during the same day. We always check the invoice information before sending it. If there are any ambiguities in the invoicing information you provide, we will contact you before sending the invoice.
The student must ensure that the personal annual income limit is not exceeded. You can find information about the student’s income and its effect on the student aid on Kela’s website.
FLOY is a reliable partner of Vastuu Group Oy’s customer responsibility service. This gives you, as well as the employer, certainty that we act as required by legislation. Upon request, we will deliver a certificate package in accordance with the Subscriber Liability Act by e-mail free of charge.
Your client is entitled if the conditions specified by the taxman are met. See the link: https://www.vero.fi/henkiloasiakkaat/verokortti-ja-veroilmoitus/tulot-ja-vahennykset/kotitalousvahennys/taulukko_kysytyimmista_kotitalousvahenn2/
Yes, users of our service receive a Valtti insurance card through us, if your work requires one. For the Valtti card, we need a passport-like face photo (if you are a new customer, you should deliver your tax card to us before ordering, or send the tax number separately). The order includes two cards:
Orange’s Valtti smart card
For access control.
The smart card information is stored in the electronic card warehouse.
The card is identified by a barcode and a chip identifier.
Blue Valtti identity card
A pictorial identification card that complies with the Occupational Safety and Health Act and is used on construction sites
You will receive a digital version of the card on the same day to your email.
The price of the order is €50, which we will later deduct from your invoice. You can deduct the costs incurred from Valtti identity card as income acquisition costs in your own taxes.
You need YEL insurance if:
- you have turned 18,
- you employ yourself,
- your employment will continue for at least four months and -your YEL income (gross salary as a small entrepreneur) exceeds approximately €689 per month (2022) during at least four months.
insurance starts at the beginning of the calendar month following the 18th birthday. The upper age limit for the insurance obligation depends on the entrepreneur’s year of birth. There is an upper age limit
- 68 years for those born in 1957 or earlier,
- 69 years for those born in 1958–61 and
- 70 years for those born in 1962 or later.
if you employ yourself as a self-employed person alongside your old-age pension, YEL insurance is optional for you.
You need YEL insurance when you work so much that your YEL income, i.e. your gross salary, exceeds an average of €689 (2022) per month. The start date of YEL insurance is the day your gross salary exceeds this limit.
Example
Tiina Timpuri starts working in March and her gross salary for March, April and May is 300 euros per month. In the summer, the activity picks up, and starting in June, Tiina’s gross salary is €850 per month. Tiina must take out YEL insurance on June 1. from
It is true. You have six months to take out YEL insurance. However, the start date of the insurance will always be the day when your gross salary exceeds the minimum YEL income limit of approximately €689 (2022) per month.
Example
Celia Consultant will start working in November 2021 and her gross salary will be €2,800 per month from the beginning. Celia must take out YEL insurance by the end of April 2022. However, the start date of the insurance will be 1 November 2021.
If your gross salary exceeds the minimum limit for YEL insurance of around €689 (2022) per month, but you work for less than four months, you do not need to take out YEL insurance.
Example
Celia Consultant has been invited to lead the course, which lasts four weeks. He prepares the course content two weeks before the course starts. In total, he works on the course for six weeks. Celia’s gross salary from the course is €8,100. Celia does not need to take out YEL insurance if this is her only assignment and she does not otherwise work as a small business owner or entrepreneur.
If your gross salary varies, but exceeds an average of €689 per month, you must take out YEL insurance.
Example
George Gardener’s busiest season is from the beginning of April to the end of September. There are more occasional jobs during the winter. George’s YEL insurance is valid throughout the year. George’s YEL work income is estimated in such a way that, on an annual basis, it corresponds to the amount of his gross salary. In addition, George chooses the invoicing months of its insurance premiums according to the season.
YEL work income is an estimate of your gross salary on an annual basis from the start of insurance or a change in work income. When evaluating your YEL work income, you can use the amount of your gross salary that has already been realized and calculate an annual estimate of your gross salary based on it.
If your work increases or decreases, notify us of the change and apply for a change to your YEL work income.
Example
Sam Student works as a cleaner alongside his studies. The amount of Sam’s gross salary varies a lot. For example, in February-March, Sam has time to do a lot of work and his gross salary is €1,000 per month. He has a lot of exams in April and May. There is less work and the gross salary is €200 per month. In the summer, Sam works full-time and his gross salary is €1,800 per month. In September, with the studies, working will slow down again and the gross salary will be €400 per month.
Sam’s gross salary: February €1,000March €1,000April €200May €200June 1800 €July 1800 €August 1800 €September €400a total of €8,200
Sam’s gross salary during eight months is a total of €8,200, or approximately €1,025 per month. Sam multiplies the monthly average by 12 to get his YEL work income to the annual level. The correct level of Sam’s YEL work income is therefore approximately €12,000.
For light entrepreneurs, the YEL insurance obligation and the correct level of YEL income are decided on the basis of the gross salary. For example, expenses billed to the customer or tax-free cost reimbursements are not considered wages and are not taken into account in the definition of YEL work income.
YEL work income is not calculated for the calendar year. YEL work income is always defined as an annual amount, even if YEL insurance is only valid for part of the year.
A calendar year means the period between January and December.
Annual means any 12-month period, for example April 1, 2021 to March 31, 2022.
Although YEL work income is estimated on an annual basis, YEL insurance premiums are only billed for the period of validity of the insurance.
Example
Peter Photographer works as a small business owner for five months and his gross salary is €1,000 per month. Peter estimates that he does not need YEL insurance because his gross salary will be less than €8,261.71 in 2022 (YEL minimum income). When Peter’s gross salary is considered on an annual basis (€1000 x 12), it exceeds the minimum limit for YEL insurance. Peter must take out YEL insurance for the five months he works and he pays the YEL insurance premium for a period of five months, i.e. the period when the insurance is valid.
YEL insurance cannot be put on hold, but it can be terminated if your work takes a longer break of several months. When you return to work, take out a new YEL insurance.
If you work less due to illness, notify us about the changing circumstances and apply for a change in income so that it corresponds to your work input. Remember to apply for a change as soon as you notice that your work has decreased, because YEL work income can be changed from the date of application at the earliest.
Apply for a change to your work income in Varma.
You can influence your YEL insurance premiums by changing the installment months of your insurance or by using the YEL payment flexibility.
Read more about the conditions for the YEL payment flexibility.
Although invoicing and payment are handled through an invoicing service company, it does not mean that you are automatically an entrepreneur according to the occupational pension laws. If the employment relationship between the light entrepreneur and the work orderer meets the characteristics of an employment relationship, it is an employment relationship. In this case, the employer is responsible for the pension insurance.
According to the solutions of the Pension Security Center, e.g. cafeteria workers and shop assistants are employees.
If you are wondering which occupational pension law applies to you as a small entrepreneur, feel free to contact Varma’s experts.
You can get more information from Varma’s website here.
