{"id":14328,"date":"2024-07-24T13:05:40","date_gmt":"2024-07-24T11:05:40","guid":{"rendered":"https:\/\/fix-blog.local\/?p=14328"},"modified":"2024-07-24T13:05:42","modified_gmt":"2024-07-24T11:05:42","slug":"adjusting-social-security-contributions","status":"publish","type":"post","link":"https:\/\/www.accountable.eu\/en-be\/blog\/adjusting-social-security-contributions\/","title":{"rendered":"Adjusting your social security contributions when you\u2019re self-employed"},"content":{"rendered":"\n

When you\u2019re self-employed, you need to set aside a portion of your income every quarter to pay your social security contributions. It\u2019s in your interest to estimate the amount as accurately as possible so you don\u2019t pay too much or too little. But how can you increase or decrease the amount of your quarterly social security contributions? We answer that question in this article and take a look at the risks associated with a bad estimate. <\/strong><\/p>\n\n\n\n

    \n
  1. How are social security contributions calculated?<\/a><\/strong><\/li>\n\n\n\n
  2. When should you adjust your social security contributions?<\/a><\/strong><\/li>\n\n\n\n
  3. Decreasing your social security contributions<\/a><\/strong><\/li>\n\n\n\n
  4. Increasing your social security contributions<\/a><\/strong><\/li>\n\n\n\n
  5. How to adjust your social security contributions<\/a><\/strong><\/li>\n\n\n\n
  6. Consequences of adjusting your social security contributions<\/a><\/strong><\/li>\n\n\n\n
  7. Tips<\/a><\/strong><\/li>\n<\/ol>\n\n\n\n

    How are social security contributions calculated?<\/strong><\/h2>\n\n\n\n

    Your social security contributions are calculated based on your net taxable professional income from three years ago.<\/strong> When you start out being self-employed, it\u2019s of course difficut to make a good estimate, since you don\u2019t know yet how much you\u2019ll earn. That\u2019s why you\u2019re allowed to pay a provisional amount, which is then recalculated later based on your actual income. <\/p>\n\n\n\n

    The formula for calculating your social security contributions when you\u2019re self-employed is as follows:<\/p>\n\n\n\n

    20.5% of your net taxable professional income + admin fees from your social security fund<\/strong><\/p>\n\n\n\n

    Let’s say your taxable income as a self-employed individual is \u20ac40,000 per year. You\u2019ll pay around \u20ac8,440 in social security contributions per year, or \u20ac2,110 per quarter. The exact amount depends on the admin fees<\/strong> your social security fund charges.<\/p>\n\n\n\n

    If you\u2019re self-employed in a secondary occupation, a self-employed student, an assisting spouse, or retired,\u00a0click here<\/strong>\u00a0to find out how your social security contributions are calculated<\/a>.<\/p>\n\n\n\n

    \ud83d\udca1 Accountable tip<\/strong>: Enter your actual taxable income in our app<\/strong><\/a>, and in just a few seconds, you\u2019ll find out the amount of your social security contributions, calculated based on your actual taxable income.<\/p>\n\n\n\n

    When should you adjust your social security contributions?<\/strong><\/h2>\n\n\n\n

    You may want to adjust your social security contributions for one of two reasons: <\/p>\n\n\n\n

      \n
    1. You pay too much in social security contributions<\/strong><\/li>\n\n\n\n
    2. You\u2019re not paying enough in social security contributions<\/strong><\/li>\n<\/ol>\n\n\n\n

      In both cases, it is advisable to change the amount.<\/p>\n\n\n\n

      Decreasing your social security contributions<\/strong><\/h3>\n\n\n\n

      Decreasing your social security contributions is not a decision to be taken lightly,<\/strong> as it\u2019s not without risk. Only reduce the amount if you\u2019re certain you\u2019ll earn less than expected.<\/p>\n\n\n\n