Adjust of income from business operations and your own work

Income from part-time entrepreneurship that has lasted a longer period are taken into account under a confirmed tax decision. This requires that the tax decision contains income from part-time entrepreneurship under a period of at least 6 months. Income from part-time entrepreneurship affecting the daily allowance is calculated by dividing the business income stated in the tax decision by as many months as the tax decision contains part-time entrepreneurship. Income from capital does not affect your earnings-related daily allowance.

Example

You started working as a part-time entrepreneur 1 January 2019, with earnings of €5,000 according to your confirmed taxation of 2019. Taxation for 2019 is assessed in September or October 2020, which means the income will be taken into account when calculating daily allowance for the period 1 November 2020–31 October 2021. Adjustment takes into account a monthly sum of €416.67 (€5000 / 12 months).

Example

You started working as a part-time entrepreneur 1 April 2019, with earnings of €5,000 according to your confirmed taxation of 2019. Taxation for 2019 is assessed in September or October 2020, which means the income will be taken into account when calculating daily allowance for the period 1 November 2020–31 October 2021. Adjustment takes into account a monthly sum of €555.56 (€5000 / 9 months).

If your part-time entrepreneur work has been running for such a short time that the assessed tax decision does not contain entrepreneur work for at least 6 months, the basis for adjustment will be your own bookkeeping on income and expenses. If you have a limited liability company, you must submit to the unemployment fund not the company’s accounts but details of how much you took out for yourself as earned income.

If you are fully employed as an entrepreneur, you are not entitled to daily allowance. However, if your work as an entrepreneur lasts no more than 2 weeks, the unemployment fund can pay you adjusted daily allowance. Entrepreneurship lasting no more than 2 weeks does not have to be reported to the TE Office, but the unemployment fund must be informed of the earned income.

If you are working through an invoicing cooperative, you are considered to be an entrepreneur in terms of unemployment cover even if you do not have your own company or business ID. If you only work part-time through an invoicing cooperative, you may be entitled to adjusted daily allowance. You must submit to the unemployment fund all agreement assignments that have been agreed upon, and pay slips with gross income details. The income will be adjusted on the period of pay.

Personal work is work that is not gainful employment. However, you must report any kind of work to the unemployment fund and TE Office. The unemployment fund will decide whether it is adjusted income.