What is a light entrepreneur, i.e. Paja Entrepreneur in Omapaja’s terms?
As a light entrepreneur you don’t need to set up your own company to work entrepreneurially. You can employ yourself using our invoicing service. In this way, taking on entrepreneurship becomes a great deal easier. Moreover, Omapaja provides you with coaching services designed to grow and develop your business.
Under the Self-Employed Persons’ Pension Act, Omapaja’s light entrepreneurs are considered entrepreneurs even though they operate without their own Business IDs. From a taxation point of view, light entrepreneurs are wage earners, which means they are not obligated to keep accounting records or pay prepayment of their income. Omapaja pays salary to its light entrepreneurs and withholds tax according to their tax cards.
Omapaja’s light entrepreneurs, or Paja Entrepreneurs, as we like to call them, agree on the assignments directly with their clients and are solely responsible for the completion and the end result of their work.
The entrepreneurs are not employed by Omapaja, nor does Omapaja seek to influence the contracts between them and their clients. However, if they wish, Paja Entrepreneurs may consult Omapaja’s experts on contract-related matters.
Paja Entrepreneur is insured as an entrepreneur
The light entrepreneurs of Omapaja have the same social security as other entrepreneurs. If their earned income stays under €7 656 per year, taking out an entrepreneur’s pension insurance (YEL) is not mandatory. In this case their take-home pay is higher, but the work does not accumulate pension. If the estimated annual income exceeds €7 656, Omapaja will help the entrepreneur to acquire the statutory YEL insurance. It is also possible to authorize Omapaja to manage the pension insurance by proxy. In this case, the pension insurance contributions can also be taken care of through Omapaja.
Those taking out the YEL insurance for the first time are eligible for 22 percent discount on the insurance contributions for the first 48 months.
Omapaja has taken out group accident and liability insurances on behalf of its light entrepreneurs, which cover most common business sectors. You can see a list of these sectors on request. The accident insurance covers the medical care expenses of accidents that occur during work and allowance for recovery days in accordance with the terms and conditions of the insurance policy. The liability insurance covers accidental damages that occur during work and fall under the insurance policy. Omapaja’s staff members can provide you with more information on insurances.
In case of an illness, a Paja Entrepreneur can apply for sickness allowance from Kela in accordance with the conditions applicable to entrepreneurs. If the Paja Entreperneur does not have the YEL insurance, the waiting period, for which time the sickness allowance is not paid, includes the first day of illness + 9 working days. If the person has taken out the YEL insurance, the waiting period is the first day of illness + 3 working days.
A light entrepreneur usually qualifies for an unemployment benefit if he or she is unemployed and operates on a part-time basis as a light entrepreneur. After you have signed up for Omapaja, your local TE Office will determine whether you are operating on a full-time or part-time basis. A part-time light entrepreneur is eligible for adjusted unemployment benefit.
You may remain a member of a wage earners’ unemployment fund and keep receiving adjusted unemployment benefit if the following conditions are met: you have already been a member of the fund before registering for Omapaja and your activity through Omapaja is considered part-time. Please note that light entrepreneurship does not accumulate the employment condition to a wage earners’ unemployment fund. However, if your earned income exceeds €12 564, you can register for the unemployment fund of entrepreneurs and accumulate the employment condition there.
Who is it for?
Do you possess expertise someone is ready to pay for? Operating as a light entrepreneur through Omapaja is exactly for you.
Omapaja is a good match for you especially if:
- there is need for your expertise
- you wish to do what you love but are not prepared to establish a business
- you would rather be self-employed than work for others
- you wish to invoice individual assignments
- you want to have more control over your work
- you want to test your business idea
- you are considering entrepreneurship
- you would like to start a business but don’t enjoy paperwork
- you want to employ yourself but miss having a work community
- you are seeking additional income alongside full-time employment or studies
- you are unemployed and want to employ yourself
- you already have a company but only small-scale business activity
- you are looking for an alternative to working in an employment relationship, but setting up a business feels daunting
What type of work can be invoiced through Omapaja?
Omapaja’s services are suited for invoicing assignments that are in some way based on the person’s expertise. You may use the services to invoice almost any kind of work that is not considered to form an employment relationship between you and your client. One clear sign of an employment relationship is the right to direct and supervise the work. If you work under your client’s direction and supervision, the assignment cannot be invoiced through Omapaja. If your client has only the right to approve or dismiss the completed work, using Omapaja for invoicing is possible.
If you are unsure whether an assignment can be invoiced through us, please contact our customer service before you start working.
With Omapaja you’re not on your own:
As a Paja Entrepreneur you’ll have the support of the Omapaja community. The experts of Omapaja coach you during all stages of your business activity. You can ask for tips or share experiences with other members of the community. You could even partner with some of our other light entrepreneurs in order to provide more comprehensive services to your customers.
What does working with Omapaja require?
Anyone can sign up for Omapaja. Successful business activity, however, requires the following characteristics:
- entrepreneurial mindset
- taking responsibility of your own work
- ability to make your expertise visible
- ability to tolerate insecurity
- desire to influence your work