If you are a Belgian freelancer, you have probably heard of the draft payrolling. But what does it actually mean? And how can it affect your freelance career? In this blog post, we are going to answer these questions and explain the benefits of payrolling for freelancers, students and artists in Belgium. 🎯
What is payrolling? 🔎
At its core, payrolling is a flexible form of employment contract where a payroll company, such as Tentoo or Amplo, acts as a legal employer for freelancers. This means that although as a freelancer you choose your own customers and projects, the interim agency is responsible for the administration, invoicing and payment of your wages.
So basically, payrolling is a way to combine the freedom of freelancing with the security and benefits of being an employee. And you can do this without taking on an independent statute.
✅ Advantages payrolling freelancer
There are several reasons why freelancers choose payrolling. Here are the main benefits:
1. Administrative relief
Thanks to payrolling, you don’t have to worry about the administration involved in running your own company. The payroll company takes care of all tasks related to payroll, invoicing, taxes and social security.
Did you know.
If you use Dexxter ‘s accounting platform, you will have insight into your business’ figures at any time and your administration will be okay very quickly!
2. Social protection
If you work as a freelancer through payrolling, you enjoy the same social protection as an employee. This means you are entitled to holiday pay, unemployment benefit, sick leave, paid holidays and pension accrual.
3. Financial security 💰
Another great advantage of payrolling is that you are guaranteed timely and correct payment of your wages. This means you don’t have to worry about late or unpaid invoices.
❌ Disadvantages payrolling freelancer
1. Payroll costs 💸
Although with payrolling you have less administration to do, there are costs associated with each contract you draw up each time you use a payroll company. It is important to weigh these costs against the benefits payrolling offers.
Attention!
There is a pretty big difference between the final amount you receive on your payroll company, compared to what you would get as a self-employed person.
2. Possible miscommunication
Because you are working with a payroll agency as an intermediary, there can sometimes be miscommunication between you and the person you work for. It is essential to make clear agreements and communicate regularly to make sure everything goes smoothly.
3. Less direct involvement 🫂
If you are used to managing all aspects of your business yourself, handing over some of the invoicing can feel like losing a bit of control. It is important to determine whether you are comfortable with delegating these responsibilities.
Payrolling for students and artists 🧾
In addition to freelancers, students and artists can also benefit from payrolling. For students, payrolling is an excellent way to earn extra money while studying without having to worry about taxes and social security contributions. Still want to become self-employed as a student? Then view our article on the difference between statutes!
Artists can also use payrolling to carry out their artistic activities without the administrative burden of an independent statute. Moreover, thanks to payrolling, they can count on a stable income stream and social protection. ?
Conclusion 🏁
Whether you are a freelancer, student or artist, payrolling can be an attractive options to launch or expand your career in Belgium. It offers you the freedom to choose your own assignments, while enjoying the benefits and security of being an employee.
Would you prefer self-employment anyway?
Then be sure to view the complete 10-step plan to successfully launch your sole proprietors!
