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Contractor versus self-employed person

Many of the assignments carried out for NTNU are to be paid as fees in the payroll system, and not as invoices in the accounting system. It you book a service, you need to know the difference. Note that this procedure only applies to the purchase of services, and not goods. If you are going to buy an item, follow the normal purchase routine.


Norsk: Oppdragstaker eller næringsdrivende

Time-limited contracts | Purchasing | Topic page salary

Go directly to assesment form

Whether it is a contractor («oppdragstaker») or a self-employed person («selvstendig næringsdrivende») must be clarified before the job is performed, because it has a major impact on the type of contract, payment and tax.

NTNU is responsible for making the assessment and handling the payment correctly when we purchase a service. As a client, NTNU can be held financially responsible for withholding tax if the person is treated as a self-employed person when they should have had an assignment contract.

It is therefore mandatory to carry out this assessment each time NTNU intends to purchase a service from a self-employed individual. The NTNU employee who orders the service is responsible for ensuring that this is done.

Is the person who will perform the job an NTNU employee?

NTNU cannot hire its own employees to carry out assignments that are close to its field of study and demand payment as a business or contractor. If an NTNU employee is to carry out an assignment, it must be documented in advance that it differs significantly from the tasks that follow from the employee's position at NTNU.

Without such a special agreement on assignment fees, all work/assignments in excess of a 100 percent position will fall under the state regulations on overtime.

Who should have an assignment contract and fee?

Most assignments within teaching/lecturing must go through the process for Time-limited contracts and thus not send an invoice as a business:

  • External examiners
  • assessment of doctoral thesis, public defence, promotion of competence, applicants for a position
  • work on the board, supervisory board, committees, councils and the like
  • As a general rule, supervisors (see assessment form, if you are in doubt)

All types of assignment contracts (in Norwegian).

Contractors are in an intermediate position between employees and self-employed persons, and have common features with both of these groups.

On the one hand, the contractor, like the self--employed, carries out assignments at its own expense and risk and without being subject to the contracting authority to instruct. On the other hand, contractors are considered employees in relation to tax and social security legislation.

Characteristics of assignments

  • The contractor does not intend to run a continuous business.
  • The work is short-term and is usually carried out as one work process.
  • The contractor cannot send anyone but himself to carry out the job.
  • The contractor is an employee in his or her main occupation and undertakes assignments outside of his or her regular working hours,

Payments and taxes

Contractors are

  • not entitled to holiday pay
  • not entitled to sickness benefit
  • are not registered with the Norwegian Public Service Pension Fund, but are deducted from tax and are covered by the National Insurance Act
  • receives a fee after the job has been performed based on the unit's own set rates

More info: Contractors

Who can send an invoice as a self-employed person?

Companies (ENK, ANS., AS, DA. etc.), non-profit associations, associations and foundations are examples of businesses that can send invoices. But you need to make an assessment before you book the job. Follow the procedure below:

Assessment form when purchasing services from a self-employed person

In order for a service to be invoiced from a self-employed person, you must first document that an assessment has been made in advance. To do this:

Fill out the assessment form

Once you have completed the form, you send it to yourself ("submit").

If you considered it to be a job in the form that must be paid as business income by invoice, the service assignment is regulated by the Lov om offentlige anskaffelser. You must then follow the guidelines for purchases.

  1. Clarify the procurement with the manager who has the authority to approve costs (BDM).
  2. Check if NTNU already has an agreement for the service.
  3. Submit order form.
  4. Attach the completed assessment form mentioned further up (which you sent to yourself).
  5. Fill out the purchase agreement with self-employed companies (in Norwegian) if you choose to use this contract.
  6. After an order from NTNU, the self-employed person/company will submit an invoice that is processed by purchasers at the various units.

Contact

Contact your local purchaser if you need assistance.

We welcome your feedback!

Professionals in payroll, finance, communications, and law at NTNU have recently reviewed and updated the information on this page.

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Other inquiries should be directed to your local purchaser.