“Self-employed” or “Employee” – since July 1st 2017 a binding decision by the social insurance is possible in Austria, even in advance
LBG-Summary: The classification “Self-employed” or “Employee” can be challenging and has, if wrong, severe consequences on social security and taxes in Austria. In practice, difficulties in the classification arise mainly when freelancers are predominantly working for one client or are integrated into their client’s economic organization. In the course of an audit by the authorities, the question regularly arises is whether the customer has to be qualified as an employer - with all associated obligations and additional payment. In order to provide a binding effect and avoid later consequences, as of July 1st 2017 certain groups, notably “new self-employed”, freelancers, farmers carrying out sideline activities, will be checked by questionnaire – now already before starting to work – if they are assigned to the correct social security and therefore correctly classified “self-employed” or “employee”. The social security check is also possible for existing employment.
Contact & Advise: Our experts in the consulting field “payroll accounting, income tax, social security, labour law” will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.