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Taxes, tax returns, holiday payment and holiday.

In these days many au pairs receive their tax return based on income for 2013. The Au Pair Center receives many calls from au pairs and host families with questions regarding taxes.

Issues related to taxes and tax return forms:

In these days many au pairs receive their tax return based on income for 2013. The Au Pair Center receives many calls from au pairs and host families with questions regarding taxes.

In short we will give an explanation on rules and regulations regarding taxes:

The income the au pair receives is subject to taxes. This is stipulated in the Norwegian Tax Payer Law , section 5-6 . But it is obligation of the family to deduct the amount payable taxes, cf section 5-4 of the said law. So each month the host family must deduct a percentage of the income and send the money to the tax authorities (in Norwegian “Kemneren”). So please make sure that the host family receives the tax card to be able to deduct taxes. Also, if the family does not receive a tax card they have an obligation to deduct 50% taxes until they receive the tax card.

A regular tax calculation follows based on income for 12 months:

Income per month  
Pocket allowance NOK 5.200,- (for contracts signed after October 2013)
Value of free food and lodging NOK 114 per day = NOK 3420,- per month
Total taxable income NOK 8620,- per month = 103.440,-
Amount tax to pay* NOK 8.500 per year or NOK 708 per month.

* If you will calculate your own taxes, please follow this link: http://www.skatteetaten.no/no/Person/Skattekort-og-forskuddsskatt/Skatteberegning/  (requires Java).

If you have not worked through the entire year in Norway it is important that this information is included in the tax form. It is usually included information on this in personal information in the tax form.

It is important that you make sure that the standard deduction of 10% for foreign workers are included in the tax returns. Please make sure that post 3.3.7 (named “Other deductions, “Andre fradrag”) is included in the form and that the amount inserted = 10% of your gross income for the year, including the value of free food and lodging.

You are not paid the value of free food and lodging in cash, but as it is a value received as part of the annual income, it is subject to taxes.

Holiday payment???

The annual income is also the basis for the calculation of holiday payment for all you that have contracts signed after 1 st July 2012. Annual income of holiday payment is then monthly pocket allowance, plus the value of free food per day received. Here’s a link to the page where the amounts are listed: http://www.skatteetaten.no/no/Tabeller-og-satser/Kost-og-losji/?ssy=2014 For 2013 free food is NOK 80 per day, for 2014 the value of free food is NOK 82,- per day.  

An example based on 6 months’ work:

If you started working July 1 st 2013 you are entitled to holiday payment as follows:

Gross income (if NOK 5.000 per month) NOK 30.000
Value of free food if 30 days per month NOK 14.400
Total 2013 NOK 44.400
10,2% holiday payment NOK 4.529,-

 

If you have been working for a full year, ie 12 months, the holiday payment = NOK 9057,60.

Holiday

Each year you are entitled to 25 working days of holiday if you started working in the family before September 30th. If you arrived after 30th you are entitled to 6 days.

Holiday is something you and the host family should plan and agree on in advance. If your host family goes away on a week-end trip, or they don’t need you during the winter holiday etc, the days off are not necessarily counted as days on holiday. Our advice is that you sit down with your host family, plan and schedule the days you are planning to take holiday.

The so-called “red days” or bank holidays, are holidays for all, also au pairs and are not counted in the 25 working days. But also, bear in mind that a number of events that should be part of cultural exchange, ie National Day, Christmas, Easter etc, are days that many should spend together with the host family to enjoy and to learn about these celebrations in Norwegian culture. It is not days for work, but for leisure and quality time with host family.

The Holiday Act in English:

 

07.04.2014 | Marit Vik
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