PRACTICAL INFORMATION AND FREQUENTLY ASKED QUESTIONS
The 4works invoicing service is a versatile online service platform established in 2017, for all kinds of invoicing needs.
The service has been developed from the beginning in a customer-oriented manner, as affordable and easy to use as possible.
The 4works invoicing service is an easy and effortless way to invoice your own work. Through 4works you can bill for your work as an individual or as a light entrepreneur, without own company.
– Register yourself as a user in the service, fill your personal data and the customer to be billed.
– Create an invoice for your customer, check and approve the invoice to be sent.
– Checks and sends the invoice to the customer and control the payments
– After the customer pays the invoice, the system automatically generates a salary calculation, according to the user’s tax information.
– Pays the Salary
– Makes a salary declaration to the Income Register and settles e.g. VAT and withholding tax
4works is the most versatile invoicing service in its field and is suitable for anyone who needs to be billed for work done or service.
Whether your need to bill small or large, irregular or regular, you will find 4works’s two different services to suit you.
More detailed information about 4works services (Basic and Group) can be found on the Services and Fees page.
4works’s pricing is clear and transparent. In addition to the service fee, we do not charge any vague additional charges or
compulsory insurance premiums, which is common practice for competing billing services.
4works service fee is 2.0 – 3.6% (Basic service)
At the beginning of invoicing the service fee for Basic service is 3.6% of the invoice’s tax-free (VAT 0%) amount. Service fee
decreases progressively, i.e. the more you bill the cheaper the use of the service will be for you. Billing accrual increases
all the time and does not reset at any point. Thus, we reward long-term and active users of our service. Service fee
is deductible as a labor cost in personal taxation. The service fee is deductible as an income-generating expense
Liability insurance 0 €
Included in the 4works service fee. We have included liability insurance in the price of our service fee as liability insurance
granted only to companies.
Voluntary accident insurance 35 € / year (insurance company Fennia)
We offer all users of our invoicing service a fixed accident insurance price of 35 euros / year.
Accident insurance is valid for work invoiced through 4 Works Palvelut Oy and for trips directly related to the work.
Accident insurance covers:
– Treatment costs up to € 20,000, per accident, without deductible. (Insurance does not cover occupational diseases or sickness benefits)
– One-off compensation for permanent damage caused by an accident up to € 50,000, without deductible.
– Death grant up to € 50,000. Beneficiaries are the relatives of the insured.
– Fennia nurse service that serves every day from 7am to 11pm. The phone is answered by a medical professional who records
claim for damage, as well as looking for the nearest free doctor’s office primarily from Fennia’s partners.
The accident insurance premium is charged on the net salary and is valid for one year after activation. The insurance premium is deductible as an income-generating expense in personal taxation.
Payments to the tax collector on salary:
Health insurance premium (Basic service)
When your earned income exceeds the YEL insurance limit of EUR 8575,45 (in 2023), users of the Basic service will be charged their gross salary
health insurance premium 1.53% + VAT (in 2023).
The salary is subject to a withholding tax according to your valid tax card, in income tax.
Using the 4works invoicing service is easy. The system as a whole has been developed customer-oriented to enable the use of the service
would be as effortless as possible, without unnecessary bureaucracy. Our extranet system is as automated as it is
possible, which is why we can also provide fast and efficient customer service. To support the use of the service in different situations
easy tutorial videos have also been made.
Creating a username for the service is free and does not oblige you to anything. You will receive an email after registration and get your personal ID to log in to the 4works extranet service. Use an active email address to create ID because the
email address will be your username in the system. We recommend changing the password first at login.
When you log in to the organization for the first time, we recommend that you first review all the pages of the online service to get an overview of the service. The site has clear instructions.
4works also offers invoicing for groups that need to invoice the whole groups work with a single invoice and split the invoiced amount
as a salary and expenses for the group members.
More detailed information on group invoicing can be found on the pages Services and prices, Group invoicing.
Before you can start creating invoices, we need personal information about you for payroll and payroll declarations.
Personal information is collected for billing information and tax administration by the billing service. 4works Palvelut Oy does not disclose register information forward to third parties. See the description of the personal register.
We need your tax information so that we can deduct a tax card withholding tax from your salary, which will be credited to the tax collector.
we get your tax card automatically from Tax collector. You need just check and verify that information of your tax card is correct.
Creating invoices is easy and fast in 4works. If necessary, you can use the tutorial video of the extranet to show you how
step by step how to create an invoice.
Once you have created an invoice and reviewed and approved it for submission, the invoice will be further reviewed by 4works Customer Service, and send to the customer as soon as possible, using the delivery method you have choose. Either as an e-invoice or by e-mail
or at the request of the customer in both ways. Invoices are also sent in the evenings and on weekends.
As an e-invoice
The e-invoice is sent via the customer’s operator and, depending on the operator, the invoice takes about 1-2 business days to be sent.
Most companies want invoices primarily as e-invoices.
The invoice sent by e-mail immediately goes to the customer as a pdf file.
Ensuring the sending of invoices
Invoices leave our system automatically as soon as they have been checked and sent by customer service. If the invoice, for some reason, does not reach the customer by e-mail or as an e-invoice, 4works will reserve an error message for that and will inform the biller.
In the 4works invoicing service, you can also invoice foreign customers who are subject to VAT and who have
official VAT number. Invoicing abroad takes place at 0 tax rate (VAT 0%), reverse charge. When you register a customer, as a “Foreign company” the base of invoice will be automatically in English.
You can monitor the status of your invoices in real time on the Invoices page. Once the invoice has been sent to your customer, invoice status is Sent.
Monitoring of payments
When a customer pays your invoice, the payment will be automatically assigned to your invoice, provided that correct reference number is used at payment. Once a payment has been applied to your invoice, the status of the invoice will automatically change to Paid
mode and at the same time the Salary Calculation is automatically generated.
Payment reminders and collection
Our system sends automatically two payment reminders to the invoice recipient’s contact email when the invoice is issued
7 days and 14 days have elapsed since the due date. If necessary, 4works will send the debtor, in addition to the payment reminders, a letter of demand and also helps the user to initiate collection actions, but the collection action itself is not included in the 4works service fee.
How much salary is left in hand?
You can use the payroll calculator to calculate how much you will be paid for the work invoiced before you make the invoice. When making an invoice on the extranet, you can see the exact payroll of the invoice, with the invoice in Draft mode, before accepting the invoice to be sent.
When will my salary be paid?
Your salary will be paid as soon as your customer has paid the invoice and the payment is reflected in our customer funds account and has been assigned to your invoice based on the reference number. You can monitor the status of your salary in real time on the Salaries page. Once the payment has been applied to your invoice, the status of the pallet will automatically change to the Payment status. Salaries are always paid on weekday mornings and are in the beneficiary’s account on the same day in the afternoon. When the salary starts to be paid, you will receive information about it in your e-mail and the status of the salary will change to Paid at the time of payment. The salary will be in your account, depending on the bank, either immediately or later in the day.
Express salary payment
For an additional fee, you can also choose the express payment service as either continuous or one-time. The price of the express payment is 20 € / salary payment.
If you want an express payment, let us know either in our chat service or by e-mail firstname.lastname@example.org.
Payroll calculations are stored in the extranet on the Payroll page, where you can easily get a pdf version of the payroll and payroll certificate.
We will collect foreclosure in accordance with the instructions and regulations of the Prohibition of Payment sent by the Enforcement Agency.
VAT is a consumption tax that the seller adds to the price of the work, service or product (tax rate 0-24%). The tax rate is determined
0%, 10%, or 24% depending on the seller’s branch. VAT is always paid by the buyer, individual or company. In a way, the seller acts as a VAT collector for the tax authority.
VAT is called consumption tax because it is finally paid by a private consumer who cannot deduct VAT in their own taxation.
A company registered for VAT may, in turn, deduct the amount of VAT it has paid from the company’s own VAT account,
and thus receives VAT as a refund from the tax collector.
VAT is not part of the salary. Value added tax (VAT) invoiced to the customer always belongs in full to the tax collector and
when invoicing through the invoicing service, the invoicing service is obliged to settle the contents of your invoice and paid by your customer
to the VAT taxable person.
So always consider the share of VAT when you price your work and remember to agree with your customer in advance, whether
this private customer or company, if the price of your work includes VAT or if it comes in addition to the price of your work and at what rate
(VAT 0%, 10% or 24%) is concerned.
EXAMPLE: You bill a private customer through a billing service
Through the invoicing service, you make an invoice to a private customer for work performed for which you have agreed on a price of 1000 euros + VAT 24%. A private customer receives an invoice through the invoicing service, the total amount of which is EUR 1,240, including 24% VAT, the share of VAT is EUR 240. Once the customer has paid the invoice, the invoicing service pays the VAT part of your invoice 240 euros directly to the tax collector and the remainder the remaining tax-free amount, EUR 1,000, forms the basis for the payroll.
For a private customer, your work / service cost 1240 euros, as this cannot deduct the VAT share of the invoice in your own taxation. If the work you do is eligible for the household deduction, your private customer can invoice the household deduction the share of work in your personal taxation.
EXAMPLE 2: You bill a company through a invoicing service
Through the invoicing service, you invoice the company for the work performed, for which you have agreed on a total price of 1000 euros + VAT 24%. Your corporate customer will receive an invoice through the invoicing service, the total amount of which is EUR 1,240, including VAT 24%, the share of VAT is EUR 240. Once the company has paid the invoice, the invoicing service pays the VAT part of the invoice 240 euros directly to the tax collector and the remainder the remaining tax-free amount, EUR 1,000, forms the basis for the payroll.
The company makes its own tax return and declares in its VAT return that it has paid EUR 240 in VAT and the tax collector
refund the VAT share in full to the company. The company paid 1000 euros for your work / service, as this will receive an invoice as a refund of the VAT portion from the tax collector.