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Part-time entrepreneur

If your business is part-time, you may be entitled to adjusted earnings-related daily allowance.

However, you cannot decide for yourself whether your business is part-time or not. It is up to the employment authority to determine and assess the extent to which your business activities employ you.

Effect of part-time business on earnings-related daily allowance

If, based on your workload, the employment authority has assessed that your business activity is part-time, we can pay you earnings-related daily allowance despite the business activity.

In the payment of the earnings-related daily allowance, we take into account the earned income you receive from business activities. This income reduces the amount of earnings-related daily allowance paid to you. You can read more about the adjusted earnings-related daily allowance in our databank.

The same applies if your full-time business is short-term. Full-time business activities are short-term if you are employed in them for a maximum of two weeks.

Disclosure of revenue

When you as a part-time entrepreneur apply for earnings-related daily allowance, we need information about the earned income you have received. These earnings are adjusted, i.e. they are taken into account in the amount of earnings-related daily allowance paid to you.

In the mediation of corporate income, we only take into account the earned income portion of the income. On the other hand, we do not take capital income into account when paying earnings-related daily allowance.

As a rule, you can report your earned income to us by means of a tax decision. We can use it if there have been no major changes in your income. We divide a year’s earnings into monthly income. When we pay you earnings-related daily allowance, we take this monthly income into account in the amount of earnings-related daily allowance.

If you have just started and do not yet have a first tax decision or there have been changes in your income, you can provide us with another explanation of your income. Here we can make use of accounting, financial statements, income statements and a note book.

Assessment of the part-time activity

When you report your business activity to the employment authority, you will be asked to provide an account of the amount of work required for the activity.

Respond to the request for clarification without delay and with care. The Labour Authority will await your response before it issues a statement on the matter. For our part, we cannot pay the earnings-related daily allowance until we receive a statement from the employment authority. You can therefore influence the speed of processing your earnings-related daily allowance application by responding to a request for clarification as soon as you receive it.

In evaluating the main and secondary activity of your employment, the starting point and the decisive factor is the amount of work required by the business at the time. For example, the Labour Authority does not take into account the potential future workload of employment in business.

If the amount of work required for your business activity is currently large enough to prevent you from receiving a full-time job, employment in the business activity is full-time. The assessment is based on an overall consideration in which the employment authority takes into account all evidence of the employment status of the activity.

The estimate of the workload is mainly based on what you yourself tell about the workload. On the other hand, for example, the income you receive from business activities or the lack of income does not have a direct impact on the assessment of employment, as even low-profit or loss-making activities can employ you in such a way that it is not possible to accept full-time work.

Your business can be considered as a secondary activity on the basis of sufficient employment during business operations. If you have been working full-time for at least six months during your business or have fulfilled the employee’s condition regarding employment during your business, for example, with part-time work, the employment authority may consider the amount of work required by your business to be minor as intended.

However, considering a business to be a secondary activity on the basis of the above-mentioned employment requires that there are no changes in the scope of the activity. If your activity expands after unemployment begins, the employment authority will assess whether your activity is still part-time.

You can also demonstrate that the business has been sidelined by, for example, full-time, normally advanced studies that have lasted at least six months during the business.

If your employment in business activities lasts for no more than two consecutive weeks, the employment authority will not determine the main or secondary activity due to the short duration of the activities.