We define the self-employment situation when a natural person starts a business activity on his own account and at his own risk. In our country, this term refers mainly to those who run sole proprietorships, but the status of self-employed varies between countries.
There are significant costs associated with work in Poland. Therefore, entrepreneurs decide to introduce various changes, which are aimed at reducing these expenses. The most expensive is employing employees on the basis of a contract of employment, which on the other hand is also the safest for employees. Nevertheless, now the contract of employment is a luxury. Employers prefer civil-law contracts – for work and orders that allow for a reduction of costs and easier dismissal of employees.
Also, more and more employers point out that it prefers self-employment, which is also a form of reducing costs but also has its benefits for the employee. What is self-employment?
Self-employment – what is it?
To be self-employed, we must set up an individual business. Therefore, the self-employed company can then start cooperation with the company ordering work. Self-employed can also cooperate with many companies, which is popular among people doing so-called free professions but not only.
However, we must remember that we can not always be self-employed. First of all, this does not apply to people who work under the management, in the place and time specified by the ordering party, do not bear the economic risk associated with the performed activity, and perform actions at the request of the entity that is liable to third parties for the result and their performance (excluding liability for tort).
Advantages and disadvantages of being self-employed
Most often, it is profitable to transfer from a full-time job to self-employment for both the employer and the self-employed. However, we must remember that such a solution also has its drawbacks, especially when we compare them with work under a contract of employment.
An employer who undertakes cooperation with a self-employed employee may reduce costs and at the same time is able to offer a larger sum to an employee than when he or she worked on a contract of employment. Therefore, we can earn more then.
On the other hand, self-employed, who are finally entrepreneurs, must regularly settle accounts with the tax authorities. There is a possibility of settling a flat rate or a flat tax rate of 19% of the income tax rate. There is also a plus because natural persons must pay a progressive tax of 18% and 32% according to the thresholds. In addition, self-employed bear lower costs in ZUS, so they do not have to give as much money to the office as full-time employees.
On the other hand, the downside is the stability of employment, the lack of privileges for people employed on a contract of employment and the need to conduct accounting independently or with an accounting office, which also means higher costs.