Freelancers - Contractors
Digital Nomads, or just digital people, Wherever You are and work, we get you covered
Step 1: Are you Compliant? Make the Test!
Step 2: Become Compliant!
Read carefully each of the 11 questions and determine your risk level.
If you could not answer all of these 11 questions with a clear YES, you will need to decide what to do next.
1. Task Autonomy
Do you have complete liberty to determine how you complete the assigned tasks? – My answer is: Yes / No / Maybe?
2. Prior Contracts
Have you worked on more than one contract of a definite term in the past? – My answer is: Yes / No / Maybe?
3. Work Schedule
Are you free to set your own work schedule and decide how to complete your projects? – My answer is: Yes / No / Maybe?
4. Supervision
Do you ensure you do not supervise or monitor other employees or contractors? – My answer is: Yes / No / Maybe?
5. Self-Employment Status
Do you publicly identify yourself as self-employed instead of claiming to be an employee of the company? – My answer is: Yes / No / Maybe?
6. Client Freedom
Are you free to work on projects for other clients that are unrelated to this business? – My answer is: Yes / No / Maybe?
7. Invoicing and Payment
Do you submit invoices for payment or use an expense report rather than receiving a fixed monthly salary? – My answer is: Yes / No / Maybe?
8. Tax Compliance
Do you adhere to tax deadlines and ensure timely payments? – My answer is: Yes / No / Maybe?
9. Training
Are you starting work without receiving any training from the company? – My answer is: Yes / No / Maybe?
10. Insurance
Do you carry proper insurance documentation, including health, property, and liability coverage? – My answer is: Yes / No / Maybe?
11. Invoicing through a third-party limited company or Contractor of Record
Do you invoice directly through a legal entity not belonging to you as a majority shareholder? Do you invoice indirectly through a Contractor of Record service provider? – My answer is: Yes / No / Maybe?
Result of the test
If the answer to any of these questions is a clear “No,” it may mean you are not compliant with local laws and regulations. Sooner or later, it could result in potential worker misclassification issues or legal complications. Best-case scenario: your contract gets canceled.
Solution 1
Stay as you are
You think that they will never catch you, and the employer will never check your situation precisely by himself. You can bear the risk of being subject to misclassification at some point.
You think your employer will never have a tax or social security control to reveal the unclear situation.
For you to know: The cost of a reclassification can vary depending on income and duration. Typically, the freelancer may be required to pay around 18.9% of their income in social contributions, with half paid by the freelancer and the other half by the employer. For instance, if a freelancer earns €50,000 per year, they would need to retroactively spend approximately €9,450 in social contributions. The client would also be responsible for the same amount, totaling €18,900 for the year. These costs tend to accumulate if false self-employment spans several years.
Solution 2
Become a member
of the Qaori Cooperative and be protected under Swiss and EU law. Qaori.Coop is registered under the jurisdiction of the Swiss DAO Association.
Being a shareholder in the cooperative can serve as an alternative to establishing your own legal entity:
You do not need your own legal entity
As an individual member of the Qaori Cooperative, you are legally covered and don’t need another structure. You can also become a coop member with any entity, LLC, LTD, GmbH, UG, etc. We offer the most flexible settings in the market. Qaori saves you the cost of setting up and maintaining your own legal entity if you wish so.
Tax liability
You still need to pay taxes in your home country, at least if you have one. Many of our members are nomads or perpetual travelers and don’t pay taxes. Five Flags Theory—have you heard about it? We are happy to schedule a consultation with you regarding your personal situation and how to optimize your tax.
Outsource invoicing to Qaori
Qaori.Tech OÜ will invoice your employer or clients from our Estonia entity and pay you conveniently in any currency via bank, wallet, or cash. Your employer and you are now fully compliant with local or international laws.
Fast and secure Payouts
Qaori is super fast and flexible with payouts. We use IBAN, Swift, ACH, wallets, and crypto in any currency. We always look to optimize the transfer costs. Most of the payments are processed within 2 business days.
Qaori is the most cost-effective compliance protection
The cost of the cooperative service is minimal compared to classic commercial solutions. The reason is that Qaori is a billionaire-free zone and not based on extraction economy principles.
Qaori Governance
A cooperative belongs to the members and has a defined internal governance structure. The members decide on the pricing and service catalog. You can easily become a voting member of the DAO.
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