Well-managed tax and employment affairs
Special tax rules make it both simpler and cheaper to hire private individuals to carry out work on the employer's (client's) home or holiday home, e.g. gardening, work on the house or cabin, cleaning and other housework.
Subject to certain conditions, you can avoid paying employer’s national insurance contributions.
A simplified message both for the payment of tax deductions and as a payslip has also been prepared.
The salary is taxable for the recipient in the normal way. However, see the explanation later in the brochure that salary up to and including NOK 6,000 per year to one person is tax-free.
Foreign workers are taxable for their salary according to the same rules as Norwegian workers. This also applies to workers with a work permit in Norway in accordance with the special scheme for au pairs.
The simplified rules do not apply when you hire a company or self-employed person.
Benefits of well-managed affairs
Managing your affairs carefully will give you greater security if the employment relationship is managed within the boundaries of the law and the work is carried out under well-managed circumstances. In this way, work in a private home is treated in the same way as any other work. For the person who performs the work (the worker), it is often an advantage if they have their own registered income. This can have an effect on the payments they receive from the national insurance scheme, including sick pay. The worker will also be able to accrue pension credits.
Structure of the brochure
In this brochure, we have primarily explained the rules from the employer's perspective. We then go on to consider circumstances which are of specific interest to the worker. Finally, we give some examples of the practical implications of the rules.
Visit skatteetaten.no for more information on the simplified scheme. The tax office, the tax collector (also known as the treasurer or municipal treasurer) and NAV (the Norwegian Labour and Welfare Administration) in your municipality will also be able to tell you more.