The DBA Act will take effect on January 1, 2025. What does this mean for your collaboration with zzp'ers?
The new Law DBA(Deregulation of Assessment of Labor Relations) will come into effect on January 1, 2025, and will have a major impact on companies working with freelancers. But don't worry, with a few smart adjustments you can optimize your collaboration with your freelancers and remain compliant with the new regulations. In this blog, we will tell you exactly how to do this, so that you continue to work smoothly with your freelancers and remain compliant.
The IRS is cracking down on false self-employment, but you stay in control!
One of the biggest changes brought about by the DBA Act is stricter control on false self-employment. This means that the tax authorities will check more strictly whether your self-employed workers are really self-employed. This may sound like a major constraint on your cooperation, but by making a few strategic adjustments, you can use this new legislation to your advantage.
Give direction to the zzp'er
The biggest advantage of working with freelancers is flexibility. To prevent the tax authorities from seeing your collaboration as disguised employment, it is important that the control lies with the self-employed person. Let the professional decide how to tackle the job. This is not only good for the quality of the project, but also for your peace of mind. After all, this way the zzp'er remains fully responsible for the execution of the assignment, which is an important signal to the Tax Office that this is an independent professional.
Freedom, happiness
Another smart move is not to tie the self-employed person to your working hours and location. Zzp'ers have the freedom to work where and when they want, and this should also be visible in practice. This freedom is an important characteristic of self-employment and helps you comply with the rules of the DBA Act. By managing this, you create a cooperation that is pleasant for both parties and complies with the legislation.
Smart with model agreements
An important tool for staying compliant is the use of model agreements. These provide clarity in advance about the employment relationship between you and the self-employed worker. But beware: it is crucial that practice matches the agreements in the contract. Regular checks whether the working agreements and reality are in line are therefore essential. That way you avoid surprises during an audit.
Commit to diversity
Another consideration is to encourage your freelancers to work for multiple clients. This not only helps meet the requirements of the DBA Act, but also keeps freelancers on their toes and flexible. A freelancer who works for multiple clients clearly shows that he or she is not an employee, but a true independent professional.
Make each assignment unique
A smart way to avoid false self-employment is to clearly agree on each assignment. Make sure that each job has a clear head and tail, and that the content of the assignments varies sufficiently. This prevents the collaboration from looking too much like employment and makes it more fun and challenging for both you and the self-employed worker.
Conclusion: don't be put off by the DBA Act
The DBA Act brings changes, but it is certainly not a reason to stop your collaboration with freelancers. On the contrary, with a few strategic steps you can continue to work with the best freelancers and remain compliant with the regulations. Provide clear agreements, give the freelancer space to work independently and use model agreements to record everything neatly. This way, you can continue to work confidently with the best freelancers on the market.
Are you currently working as a freelancer and considering salaried employment? We have options for you!
Are you currently working as a zzp'er, but are you finding that the administrative burden or uncertainty created by the DBA Act is limiting you? Perhaps you are considering going back to a salaried job, where you have more security and fewer worries. At Hire.co.uk we understand this dilemma and we are happy to help you find a suitable position. We have several vacancies available for professionals who want to trade their independence for the benefits of a permanent job.
Check out our job openings here and find out how we can help you find a new challenge with the security of salaried employment.