FAQs

Navigating freelancer invoicing and payment solutions can be tough, especially for foreigners and new freelancers. We have gathered many of the common questions and problems with their answers to help you understand how we work and what to expect using PoP.

Frequently asked questions

Featured Questions

Why does PayoutPartner charge a 4.9% fee, and 14.1% employers tax?

We charge a service fee of 4.9% which covers our costs for, among other things, rent, salaries, software licenses, accountant/auditor.

The tax authority collects 14.1% of all wages employer's tax from all employers. This finances, among other things, your public sickness benefit, pension and unemployment benefits from NAV when you need this.

Exceptions for Salita; No fees, no employers tax

Salita has a special agreement with PayoutPartner, where they cover all service and employer's tax costs for their interpreters and translators.

For all payments from Salita, you will not be charged any additional fees. All fees are paid by Salita.

What does it mean to be a Freelancer?

As a freelancer, you pay tax in the same way as wage earners. You submit a tax return for employees, and are entitled to minimum deductions as a wage earner. You are not obliged to keep accounts, and must not be registered in the VAT register.

You are a freelancer when you receive pay for individual assignments without being a permanent or temporary employee of the person you perform the work for, but are also not self-employed. As a freelancer, you are in an intermediate position between an employee and a self-employed person.

Learn more

I have more questions, can I email?

Yes! Our email is support@payoutpartner.com and is the best way to reach us.

Our aim is to get back to you within 24 hours and we will make sure you get the support you need.

I have more questions, can I call?

To ensure that we can operate at very low costs, we do not have a telephone service.

However, you can email us at support@payoutpartner.com and we aim to get back to you within 24 hours.

Freelance tax and pricing

How can I invoice without a company in Norway?

You can use PoP to invoice without starting a formal company.

  • First create a PoP account with a registered email address.
  • Fill in all the relevant details including a valid means of identification. Note that - PoP allows two means of identification; a valid ID document or a registered phone number.
  • You can then enter details about the work you will be paid for and who your recipient/customer is.
  • We send the invoice to the customer and ensure that VAT is added and that it complies with Norwegian regulations.
  • When the customer has paid, we transfer the money to you paid as salary, fully taxed, all statutory fees paid and ready for use.

Can I send an invoice as a private person?

Yes, we recommend invoicing as a private person since this helps you avoid all the necessary, but bulky, paperwork required for freelancers and workers in Norway. Invoicing as a private person is also the same as invoicing without a company.

What are the tax obligations for freelancers in Norway?

First thing to be aware of is your employment status as this is important in determining your tax obligations. There are two major work status you can have

  • Freelancer/Contractor
  • Self employed/Sole proprietor

Income tax for freelancers
There's a general income tax that applies to all taxable income. And a "Bracket tax (Trinnskatt)" that is applied and rated based on income levels.

Value Added Tax (VAT) Registration

As a freelancer, if you earn over NOK 50,000, the law requires that you register for VAT and charge it on your service pricing. Standard VAT rate is 25% but may change depending on the specific service.

There are other kinds of taxes but these are the most common types relevant to freelancers.

How do I get paid?

Once we receive payment from your client after you invoice, we make all the necessary tax and duty deductions and pop the relevant amount directly into your bank account. We payout multiple times a week, which means that you don't have to wait till each month's end to receive your salary.

Do I need to charge VAT when invoicing through PayoutPartner?

If you invoice via your own company, you have to pay attention to the type of service and the total amounts you invoice - to know when to apply VAT. When invoicing through PayoutPartner, you don't have to worry about tax deductions. We help you determine whether VAT applies and is automatically calculated if applicable, ensuring that your invoices are always compliant.

How much does PayoutPartner charge to invoice without a company (payroll service)?

The cost structure includes a 4.9% fee of the total invoice amount, with no hidden charges, making it easy for you to manage your freelance income.

How much does it cost to invoice if I have my own company and use PayoutPartner for this?

Using our invoicing software is free of charge. We offer transparent pricing for freelancers and private individuals who want to invoice and also get paid through us.

How is tax calculated from my income?

If you do not have your own company, PayoutPartner can handle invoicing your customer and pay you wages after deducting taxes and fees. Here's how it works:

For every NOK 100 + VAT that your customer pays.

  • VAT Payment: We pay the VAT portion directly to the Tax Agency to ensure compliance.
  • Service Fee: We charge a service fee of 4.9% for our invoicing and administrative services.
  • Tax-Free Allowances: If your invoice includes items like driving allowance, diet, or similar, we ensure that these are paid out to you tax-free.
  • Employer's Tax: We deduct 14.1% employer's tax, which all employers must pay to the Tax Agency.
  • Salary Before Tax: After these deductions, the remaining amount is NOK 83.35, which represents your salary before income tax.
  • Income Tax Deduction: From this amount, we deduct income tax according to your tax card. The final amount after tax deductions is transferred to you as your salary.

Invoicing solution

Can I use PayoutPartner as a company?

As a business looking for an easier invoicing and payment solution for your freelancers, PayoutPartner is a great choice as we also help companies process salary payments for their employees.

How do I create a freelance invoice?

You can use PoP to invoice without starting your own company.
- First create a PoP account with a registered email address.
- Fill in all relevant details. We also need to identify you.
- Then you can enter details about the job you are going to be paid for and who is the recipient/your customer.
- We send the invoice to the customer and make sure that VAT is added and that it is in accordance with Norwegian regulations.
- When the customer has paid, we transfer the money to you paid as salary, taxed, all statutory fees paid and ready for use.

Freelancer

Does PayoutPartner help with finding freelance jobs in Norway?

Our current focus is on providing the best invoicing and payment solutions for freelancers available. That said, we provide guides and resources that can help you secure freelance employment in Norway. We also have partner companies like Foodora and Salita who are constantly seeking new, qualified contractors. Click here to see freelancing opportunities in Norway.

Can I invoice multiple clients at once?

Yes, PayoutPartner is great for creating, managing and tracking multiple invoices from more than one freelance gig. You can create and send invoices for various clients, keeping all your freelance income organised in one place.

Can PayoutPartner be used for freelance jobs outside Norway?

Yes, you can use PayoutPartner to invoice international clients. The platform supports cross-border payments and ensures that your invoices meet local requirements.

Support and Assistance

What if my client doesn’t pay on time?

If you suspect a client of failing to pay on time, please be certain to confirm the ongoing terms of agreement between you and the client. We offer gentle reminders to help ensure timely payments, and can provide guidance on how to handle overdue invoices.

How do I contact PayoutPartner support?

You can contact the support team by emailing us directly at support@payoutpartner.com. Our team is always ready to help you with any of your enquiries. You can expect a response to your email within 24 working hours. Also, be sure to check out the FAQ section as your queries are likely already answered there.