Civil or employment contract

Civil or employment contract

 

Question:

Hi, I have the following question. I want to open an EOOD for a disabled person who is receiving a pension. I know that in this case he only owes health insurance. This person will appoint a massage therapist to a massage studio. The business owner will not participate in the activity. What accounting activities are required for this company?

Thanks for your attention.

 

 

Answer:

Hello,

First, we want to draw your attention to the fact that you cannot appoint someone to a civil contract. The appointment can be on an employment contract. Civil contracts are signed when assigning a specific task (one-time). What you are thinking of doing is a hidden employment contract and you may have problems with labor inspection. If you have an employment contract staff, you must have a contract with the occupational health service with all the resulting research (regarding the health of the worker, working conditions, etc.). You should keep in mind that the sanctions imposed by the Labor Inspectorate for violations of labor law can reach up to BGN 15,000 on a case-by-case basis. And, the difference in the cost of insurance in civil and employment contracts that the company has to make is only 0.5% less in civil contracts.

From an accounting point of view, you will need to record the company's revenue, accounting for the company's expenses, accrual of salaries and insurances to the self-insured person and staff, monthly submission of statements of insurance for the owner and staff, if there is a rent for the premises - preparation of accounts for rent payments and filing quarterly statements of withholding and due taxes on rents paid, as well as a number of other activities related to compliance with the requirements of the tax and insurer but legislation.

We hope we have been helpful.

Greetings!