Guidelines for disbursement to a self-employed person at UiA (doc in Norwegian) describe what must be considered when assessing whether a payment is salary or a business income to the self-employed person.
Teacher and examiner
When it comes to teaching and examination, UiA has, after clarifications with both the auditor’s and the tax authorities, concluded that this should not be paid as a business income according to the current regulations.
The main reasons are:
- UiA stands responsible for teaching/examination.
- UiA controls the time for execution.
- UiA has a very limited warranty.
- UiA has a professional instruction’s authority.
- Traders cannot provide with an alternative.
- Activity happens in the UiA’s premises.
An exception can be made for a guest lecturer who supplements a teaching program for a few teaching hours. This could be billed at UiA and can be paid out as a business income.
Sole- proprietorships
With payment to sole- proprietorships, it should always be taken into consideration whether the payment applies as a salary or if the payment is a business income. A form is prepared for assessing whether it is a salary or for the business, this shall always be in the payout voucher. If the payout is considered as a business income, the invoice should also cover the travel expense. UiA stands responsible if for tax- deductions and employer’s contribution, the allowance is payed incorrectly as a business allowance. A letter is also prepared, which can be used, if an invoice from a sole-proprietorship is considered as a salary.
Own employees
An employee cannot take an extra assignment which is close to their subject area and demand for a payment as a business person. UiA cannot engage their own employees to carry out an assignment which is associated with the project activities as a firm /company, or for a company.