The proportion of companies disguising their full-time employees as freelancers has fallen five times in the past three years. Companies use this form of employment to save on tax deductions, but the very act of registering an employee is illegal, the Federal Tax Service noted.

The share of companies disguising full-time employees as freelancers has fallen five times in three years.

By 2023, the share of companies registering full-time employees as self-employed will have dropped to 0.7%. Forbes writes about this citing data from the Federal Tax Service.

In 2020, the proportion of this type of company was 3.6%. Thus, in the last three years, the figure has been reduced five times.

To identify these companies, the Federal Tax Service looks at more than 20 parameters, including the amount and frequency of payments, the self-employed’s previous workplaces, and their income.

The Federal Tax Service noted that companies are prohibited from registering employees who perform direct job tasks as self-employed. Companies use this labor relations format to save on tax deductions, the department said.

Author:

Kirill Bilyk

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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