Service contract

1. Parties to the Agreement

1.1 Service Provider:

Omapaja Oy (Business ID 2399894–2)

1.2 Service User (hereinafter the “Entrepreneur”):

The individual using the service (personal identity code)

(Hereinafter collectively the “Parties”.)

2. Service Content

Omapaja provides support services for entrepreneurship, self-employment and earning. The Entrepreneur invoices completed work via Omapaja’s invoicing service using Omapaja’s business ID. On behalf of the Entrepreneur, Omapaja handles statutory obligations related to invoicing, payroll calculation and payment, tax withholding and other cooperation with authorities, and provides expert, high-quality customer service. Omapaja has taken out group accident, legal expenses and liability insurance that cover the Entrepreneurs’ insurance protection in accordance with the applicable policy terms.

3. Registration for the Service, Required Authorisations and Details of the Invoicing-Service Entrepreneur

Before using the service, the Entrepreneur must register and provide the necessary personal and other identifying information, including accurate bank account details. The Entrepreneur must provide truthful information when registering so that a user account can be created.

Omapaja has the right to verify the information provided by the Entrepreneur from external sources and, where necessary, correct it in accordance with applicable legislation.

Omapaja has the right to deny access or suspend provision of the service if all required Entrepreneur details have not been provided, or if the information is incomplete, incorrect, inappropriate, or the Entrepreneur otherwise fails to meet the conditions for access.

The Entrepreneur is responsible for keeping their Entrepreneur and contact details up to date in the service. The Entrepreneur must notify Omapaja of any changes without delay. The Entrepreneur account, user ID and password are personal and may not be disclosed to third parties. The Entrepreneur is responsible for all activity carried out in the service with their account. The Entrepreneur is responsible for the accuracy and timeliness of the information they provide. The service is based on information supplied by the Entrepreneur, and if the Entrepreneur provides incorrect or outdated information, Omapaja is not liable for any resulting errors, costs or consequences. Any errors must be reported to Omapaja without delay.

Omapaja may require updates to authorisations or new authorisations during the contract term. The Entrepreneur is responsible for providing appropriate authorisations and accepts that, in cases of insufficient authorisations, Omapaja is not responsible for uninterrupted availability of the service. Omapaja has the right to withhold provision of the service or terminate the agreement due to deficient or incorrect authorisations.

After registration and whenever requested, the Entrepreneur is obliged to provide the identification and due-diligence information required by the Act on Preventing Money Laundering and Terrorist Financing (28.6.2017/444), as well as information on whether the Entrepreneur is a politically exposed person as defined by law. The Entrepreneur must also immediately report any changes to this information. If the Entrepreneur neglects the obligation to provide the information required under the Anti-Money Laundering Act, the service will not be provided. Omapaja has the right to block the Entrepreneur’s use of the service if the required information has not been provided or is incomplete or incorrect. If the Entrepreneur neglects the above notification obligation to the service, they have no right to use the service.

4. Status of the Invoicing-Service Entrepreneur

An invoicing-service entrepreneur is an independent contractor (light entrepreneur) operating without their own business ID, who agrees on the terms and pricing of the work directly with the client. Invoicing is carried out through Omapaja’s invoicing service, and the Entrepreneur is treated for tax purposes as an employee and is not personally obliged to keep accounting records. Work is invoiced via Omapaja’s invoicing service using Omapaja’s business ID. The Entrepreneur has the right to use an assistant or substitute.

Omapaja is not the Entrepreneur’s employer, and no employment relationship arises between the Parties. Among other things, Omapaja has no right of direction or supervision over the Entrepreneur’s work or service performance. Only assignments performed under a commission (service contract) may be invoiced through Omapaja’s service. The Entrepreneur is responsible for ensuring that no employment relationship arises between the Entrepreneur and the purchaser of the work. Collective labour agreements do not apply to the commission relationship between the Entrepreneur and the purchaser; it is a subcontracting arrangement. The Entrepreneur is responsible for the terms of the commission relationship and the quality of their work vis-à-vis the client. Work invoiced through Omapaja does not accrue employee unemployment benefits qualifying period, but an Entrepreneur insured under YEL may join the unemployment fund for entrepreneurs.

5. Price List

Joining the service is free of charge and there are no fixed monthly fees. Omapaja charges a service fee and, where applicable, an insurance protection fee upon payment of the remuneration, in accordance with the valid price list. The service fee includes invoicing and remuneration calculation services, statutory filings, insurance protection and customer support. The up-to-date price list is published annually on Omapaja’s website.

6. Formation of Remuneration

Omapaja pays the Entrepreneur compensation for invoiced work as Entrepreneur’s pay/remuneration. The Entrepreneur’s remuneration is formed from the VAT-exclusive invoiced amount, from which approved expenses, taxes and service fees are deducted. If annual work income exceeds the then-valid YEL income threshold, the Entrepreneur must take out YEL insurance. The health insurance contribution is determined according to the Finnish Tax Administration’s guidance and is withheld when the Entrepreneur is liable to insure under the Self-Employed Persons’ Pensions Act. Otherwise, no health insurance contribution is withheld from the Entrepreneur’s remuneration.

Value added tax at the rate in force is always added to the Entrepreneur’s VAT-exclusive invoice. The VAT rate is determined by the Entrepreneur’s line of business. The Entrepreneur cannot apply the small-scale activity VAT exemption under Section 3 of the VAT Act to their own activities, as they operate under Omapaja Oy’s business ID. The Entrepreneur must take the above costs into account when agreeing on pricing. The Entrepreneur must set their billing rate so that the resulting gross remuneration, after deducting expenses, is reasonable in relation to the work to be invoiced.

The compensation agreed between the purchaser and the Entrepreneur for the work or service is a lump-sum fee. In addition to the agreed fee, the Entrepreneur is not entitled to charge any other compensation, for example for overtime, sick leave, travel, or the use of their own tools, unless specifically agreed in advance.

Remuneration is paid to the Entrepreneur’s bank account in accordance with their remuneration payment settings after the purchaser has paid the invoice to Omapaja and the payment has been received by Omapaja.

In the Entrepreneur’s invoicing, PlusID Oy acts as the payment intermediary, and the Entrepreneur is responsible for their own personal taxation.

7. Matters Related to YEL Pension Insurance

If annual work income exceeds the then-valid YEL income threshold and the Entrepreneur has regular invoicing for more than four months, the Entrepreneur must take out YEL insurance. YEL insurance can be arranged via Omapaja with a power of attorney in cooperation with Omapaja’s partner insurance company. Pension insurance contributions are tax-deductible in the Entrepreneur’s personal taxation.

The Entrepreneur is obliged to send a YEL certificate to Omapaja if they have insurance in force elsewhere than via Omapaja’s authorisation with a partner company. The Entrepreneur must also provide written information if a specific exception applies to them such that they are not YEL-liable. This information is periodically checked by Omapaja, and the Entrepreneur is obliged to provide up-to-date information to Omapaja.

8. General Principles

Omapaja is not responsible for the Entrepreneur’s tax planning. Omapaja’s role is limited to the invoicing and payment intermediation service, which ensures smooth payment flows and statutory filings when invoicing is carried out via Omapaja. The Entrepreneur is responsible for their own tax obligations.

9. Expense Reimbursements

The Entrepreneur may deduct, as operating expenses, costs in accordance with the Finnish Tax Administration’s guidance that arise directly from performing the specific work (income-generating expenses). The Entrepreneur may also receive part of their income as tax-free reimbursements in accordance with the Tax Administration’s guidance, which reduce the amount on which taxes are paid. The necessary receipts must be provided to Omapaja no later than before the invoice is sent to the customer. The Entrepreneur is responsible for the correctness of the reported expense reimbursements.

The contractor (Entrepreneur) must agree with the client in advance, preferably in writing, whether travel and kilometre allowances and actual travel costs, such as tickets or accommodation, will be reimbursed. It must also be defined whether these are paid in addition to the agreed fee or included in the total compensation. An advance agreement is necessary for Omapaja Oy to pay these allowances to the Entrepreneur tax-free.

The contractor (Entrepreneur) must agree with the client in advance, preferably in writing, whether the immediate costs arising from the work will be reimbursed and whether they will be paid as part of the total compensation or in addition to the invoiced remuneration. If reimbursement is agreed in advance, Omapaja Oy will pay these costs without withholding tax. However, note that such reimbursements constitute taxable income for the recipient, who must claim them as deductions in their own income taxation as income-generating expenses.

10. Payment Service Provider

The payment traffic of Omapaja’s invoicing service is processed via the PlusID system. The PlusID service is provided by Aalto Business Oy (3134988–9). PlusID acts as a payment service provider under the supervision of the Finnish Financial Supervisory Authority. The supervisor requires that, in services for Entrepreneurs, the transfer of salaries and other payments is carried out via a supervised payment institution. All payments are handled in accordance with the Authority’s regulations. The payment service provider is responsible for the secure handling and transfer of funds from the client to the customer.

The PlusID service provides a reliable community-internal channel through which a service can identify and obtain information about other Entrepreneurs belonging to the PlusID community. Another member of the PlusID community (the “Entrepreneur”) grants the service the right to request, use and store their information, for example for reliable identification or registration to the service. A community member grants the service the right, for example, to view their address or contact details stored in the PlusID service.

The key objective of the PlusID community is to enable reliable data transfer between Entrepreneurs and services.

11. Omapaja’s Liability

Omapaja is responsible for providing the service, processing invoices and remunerations, and remitting taxes and payments to the authorities. Omapaja’s insurance covers the Entrepreneurs’ activities in accordance with the applicable policy terms. Omapaja has taken out group accident insurance for Entrepreneurs, which covers accidents occurring in work invoiced via Omapaja, in accordance with the applicable policy terms. Omapaja has also taken out legal expenses insurance and general liability insurance for Entrepreneurs. The insurance covers possible personal injury or property damage caused to the client or a third party, in accordance with the applicable policy terms. The Entrepreneur’s deductible in loss events is typically EUR 1,000. The lines of business covered by the liability insurance can be obtained from Omapaja’s customer service. The insurance does not cover damage resulting from unprofessional work.

12. Entrepreneur’s Liability

The Entrepreneur is responsible for their own work, statutory obligations, damages caused by their activities, and any required licences and qualifications. If the Entrepreneur’s profession requires official licences, these must be provided to Omapaja for review before work begins. The invoicing service cannot be used in certain licensed professions, so the Entrepreneur should confirm the suitability of the invoicing service by contacting Omapaja. Omapaja is not responsible for the outcome of the customer’s work and is not a party to commission relationships.

Use of Omapaja’s invoicing service requires that the Entrepreneur complies with the service terms. The Entrepreneur undertakes to perform all necessary actions and to provide Omapaja with the information and authorisations it requires from time to time in a timely manner, in the correct format, and accurate and complete in content. The Entrepreneur is responsible for the timeliness and accuracy of the information provided. Omapaja provides the service based on the information supplied by the Entrepreneur.

The Entrepreneur is responsible for providing to Omapaja the material (e.g., expense receipts) in the format required by the service and according to Omapaja’s instructions. The material must be delivered in good time if the Entrepreneur wishes tax-free deductions to be taken into account in the remuneration for the current pay period.

The Entrepreneur is responsible for the correctness and acceptability of invoices, receipts, expense claims and other costs and data they add to the service. The Entrepreneur must provide all necessary information related to invoices and expenses. Omapaja has the right not to approve a particular invoice or expense claim if it is contrary to legislation or the terms of use, or if the basis for such invoice or claim is otherwise unclear or can no longer be used for deductions in the current pay period for any reason.

The Entrepreneur is fully responsible for their light-entrepreneurship, its planning and execution, as well as liabilities to third parties (including tax and other official responsibilities). The Entrepreneur is personally responsible for their own taxation. The Entrepreneur understands that use of the service may affect, for example, unemployment or other benefits. The Entrepreneur is responsible for determining their own rights and obligations.

The Entrepreneur is responsible for their own equipment, network connections and information security, including anti-virus and other protection systems.

Information related to remuneration is automatically submitted to the Finnish Incomes Register via Omapaja to the Tax Administration.

13. Intellectual Property Rights

All trademarks, designs, trade names, methods and inventions developed by the Entrepreneur belong to the Entrepreneur. Omapaja has no rights to these without a separate agreement.

14. Confidentiality

The Parties undertake not to disclose each other’s confidential information to third parties without written consent, unless disclosure is based on law or an authority’s order.

15. Term of the Agreement

The service agreement enters into force upon acceptance and remains valid until further notice. The agreement may be terminated with seven (7) days’ notice. Omapaja reserves the right to amend the terms and the price list. Amendments enter into force when published on Omapaja’s website. Use of the service is deemed acceptance of the amended terms.