In this brochure, we have mainly looked at private work in the home from the employer's perspective. Here, we briefly explain some factors which are important for the person who is to perform the work or assignment.
Well-managed affairs can give greater security and financial benefits
It will be beneficial for anyone who performs paid work in or in connection with the employer's home to have well-managed and lawful employment circumstances. Firstly, it will give greater security for the worker as registered income can have financial benefits in the event of redundancy, for example. It may also entitle the worker to sickness benefit and the accrual of pension credits. It is also important that they pay the tax they owe and therefore contribute to the common good within society.
Specific information concerning foreign workers/au pairs
You will normally be enrolled as a member of the Norwegian National Insurance scheme from your first working day. Check with NAV about the rules for this and what other rights you have as a member of the National Insurance scheme.
The first time you order a tax deduction card, you must visit the tax office to prove your identity. You must produce a valid passport or other identity document that is approved as a travel document within the EU. Nordic citizens can produce a valid driving licence and a print-out from the home country's population register that is no more than three months old. If you do not already have a national ID number/D number, you will be allocated one. The number appears on the tax deduction card and is used to identify you to the authorities.
For more information, see Information for foreign employees: About tax, tax deduction cards and skattemelding- . NAV and the tax office can provide more information.
Rights in an employment relationship
You should note that an important distinction is made between isolated assignments and work which is performed under an employment relationship. In the latter case, you may be entitled to holiday pay from your employer and sickness benefit if you fall ill. The Norwegian Labour Inspection Authority can provide more information on holiday and holiday pay regulations. NAV will be able to provide more information on the sickness benefit rules.
Many NOK 6,000-assignments can become taxable activity
The conditions which must be met in order for you to receive salary under the simplified scheme for work in the employer's home have been explained previously in the brochure.
Payments totalling up to NOK 6,000 from a single employer in the same income year do not constitute taxable income and must not be entered in the tax return. The threshold applies per household because payments for private work assignments linked to a home or holiday home are normally considered to have been paid on behalf of the collective household. If you receive NOK 6,000 from the husband in the household and subsequently receive a payment from the wife later in the same year, the salary will be taxable.
The threshold of NOK 6,000 for tax-free salary does not apply if you receive the payment as part of a business. If you perform many trade or cleaning assignments, etc. for a number of employers, this may be considered to constitute commercial activity. If you receive sufficient payments for assignments that it must be considered commercial activity, you must register as being self-employed and all your income must be declared in the accounts for the business. Contact the tax office if you are unsure.
Cannot run a business within the same field
You should note that in order to receive a salary under the simplified scheme, you cannot be self-employed in the same field as that which the assignment concerns.
In addition, you cannot take on private work via agreements which have been entered into with your ordinary employer. If the company you work for reaches an agreement for its employees to take on the company's assignments as private jobs in the home, this will be seen as an attempt at disloyal avoidance of the tax rules. For example, a contractor cannot permit its employees to take on part of the contract privately in order to save on employer's national insurance contributions and value added tax. The tax authorities can put such arrangements aside.
Retain your submissions concerning paid work in the home
In an ordinary employment relationship, you will receive a payslip for each salary and a summary of what you have earned in January in the year after the income year. Under the simplified scheme, your employer must provide you with a copy of the simplified submission each time you are paid salary. However, you will not receive a summary in the January of the year after the income year. Salary which is reported to the Tax Administration on the simplified submission will be included in your tax return. You must enter the correct amount yourself if the amount on the tax return is wrong or missing. You must therefore safely archive your copies of the simplified submissions so that you know what you have been paid during the year. The submissions will be your proof of how much withholding tax has been deducted from your salary. Amounts deducted as tax will be offset against assessed tax in connection with your final tax settlement.