PERSONAL versus EMPLOYMENT: do not compare only the amount on paper
Invoicing is not a net wage. The comparison includes operation, holiday, hospital, reserve and the way of financing the old age.
Net wages and invoicing are not the same quantity
SCIENTIFIC OR EMPLOYMENT: How much is left after the benefits and what happens in sickness? In addition to the net income, compare the operating costs, voluntary sickness insurance, paid leave and your own old-age plan. Higher invoicing alone does not mean a higher financial certainty.
- Receipts and receipts: distinguish gross wage from the sales of the OVČ and from the actual cargo of the company.
- Disability insurance: the participation of the self-employed is voluntary, the dose is not an automatic percentage of the invoicing.
- Reserve and pension: plan them separately and use certified CSSZs for the state pension.
The employee usually sees a net wage after employee haircuts. The employee pays business costs, public insurance premiums and possible taxes. To make a comparison applicable, compare the money available to the household in the long term. In addition, consider the time without the ban, the maturity of the invoices and the costs borne by the employer in the job.
| Zone | Staff | Self-employed |
|---|---|---|
| Reception | Wage by working relationship; net amount after haircuts. | Accepted payments for contracts before their own costs and obligations. |
| Free | Vacation according to the Labour Code and a specific relationship. | The vacancy is planned on its own; it usually does not invoice work during it. |
| Disease | Protection according to participation in sickness insurance and statutory conditions. | The sickness insurance is voluntary; the claim depends on the fulfilment of the conditions. |
| Operation | A number of labour costs are provided by the employer. | The cost of equipment, services and administration is borne by entrepreneurs. |
| Age | Any employer benefits next to your own savings. | The employer's contribution may not be automatically linked to the OSAC itself. |
Income outage has other effects
Without voluntary sickness insurance, the self-employed person has no right or full refund of normal income in the sickness model. Commercial life insurance is a separate topic: it depends on contracts, insurance events, waiting periods and exclusions. The reservation and the appropriately assessed income protection are therefore addressed in the context of your expenses and commitments.
Invoicing must not only rename dependent work
The actual way of working, not just the name of the contract, is decided. The work in subordination, according to the instructions and on behalf of the employer may have the characteristics of dependent work. The business contract cannot automatically turn it into independent activity. When changing employment to IČO, it is also necessary to assess the labour law side, not only the amount of remuneration.
Three supporting documents for the own comparison
- Income outage: change status and compare the impact on the expenditure and stamina of the reserve.
- Employer's contribution: separate the money available now from the money earmarked for the old age. This calculator does not compare the invoicing of the self-employed wage.
- Pension income: supplement your own pension estimate with the objective of future income. PDF will show the model of the capital needed, not the state-recognised pension.
PDF of individual calculators are separate model backgrounds. Read them together, but do not automatically count the reserve, insurance premiums and funds for goals. You could count the same money multiple times.
The text is a general review, not an individual tax, accounting or legal assessment. Check with the accounting officer, tax advisor or competent authorities for the specific procedure and current obligations.
Numbers for your own situation
The topics of the article are followed by separate model calculations with the possibility of PDF output.