What is payrolling, and why is it useful?

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More and more people are working under freelance status, which only makes the payrolling system more relevant. After all, the payroll agency acts as the freelancer’s legal employer, allowing the latter to work for various companies and individuals. Legally, payrolling falls under the same segment as an employment agency, but it offers many additional benefits. “Flexible working is here to stay,” says Johan Lauwers, CEO of Tentoo.

How exactly do you proceed?
Johan: “The term ‘freelancer’ stands for anyone who wants to work flexibly, and that can be under different forms and statuses. Tentoo works with freelancers with and without self-employed status. The latter group is the largest. The freelancer decides for which employer (we call it “the user”) he works, during which period and under which pay conditions. We act as an employment agency by entering into two types of agreements: a labor agreement between Tentoo and the freelancer, and a commercial agreement between Tentoo and the user. No contract is drawn up between the freelancer and the user, but both parties must make agreements among themselves regarding the concrete performance of the tasks. They also determine the salary between them. “

A kind of love triangle?
Johan: “You can call it that. A triangular relationship in which the payroll agency is central. In this way, a freelancer can work flexibly without necessarily becoming self-employed. We also take on all payroll administration. In this way, a freelancer can work for one legal employer and meanwhile carry out assignments for different companies or individuals: from a large SME to an individual who wants to build a website.”

Do freelancers through payrolling have the same working conditions as white-collar workers with permanent contracts?
Johan: “
A freelancer with a payroll status effectively enjoys the same benefits as someone on a permanent contract in employment. ‘Vacation days, meal vouchers,…. Our freelancers are also entitled to them, but adapted to the reality of flexible working. Companies must also adhere to the same scales that apply to white-collar workers. If an internal IT worker earns 25 euros gross, a temporary worker with the same qualifications should not be paid 15 euros per hour to work in a similar position. If we notice that users sin against these minimum conditions, or “forget” index jumps, alarm bells go off with us and we act as negotiator. At such times you have to be assertive, with knowledge of complex social legislation. Fortunately, this hardly ever happens, and the majority of our clients act very correctly.”

Tentoo also works with freelancers with a self-employed status?
Johan: “
Yes, self-employed people with a VAT number can also use Tentoo to lighten their administrative load. As a self-employed person, you have three options: either do everything in-house, step to an accountant, or knock on Tentoo’s door. We go one step further than the accountant. We also start issuing invoices and we do accounts receivable management. That way, the self-employed can focus on the commercial part and let us do the rest. Even the tax bill we fill out.”

Has the pandemic fuelled the war for talent?
Johan: “
Although we do not actively recruit, which is what a temporary employment agency does, we have effectively noticed that the search for the right talent has not become any easier. Companies that previously would have rolled out permanent contracts without much thought are now more likely to opt for flexible forms of labor that they can call on at peak times. This trend is also playing out globally: more and more people are entering freelance status. Demand is high AND you build a certain independence into your career. The pandemic caused us to think more about our job and our working conditions: what do I want to do with my life and what work do I want to do? A flexible statute is a good answer to that quest. Flexible working is here to stay.”

Want to learn more about the world of payrolling? Check out our “how to Tentoo webinars”.

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Through My Tentoo, our online system, you enter the freelance market but still maintain the security of your employee status. Easily enter your assignments, access all your social documents such as payslips – and get to work worry-free. We take care of all the billing, payment of your wages, and workers’ compensation insurance. Find your own clients, set your own price and start your freelance career!