What you should pay attention to regarding taxes

When Mothers Hit the Ground Running

The birth of a child is the most magical moment in a woman’s life. All at once, in one fell swoop, not only does life change, but priorities are immediately redefined — what was once urgent and important will soon appear to be of the greatest irrelevance in the world.
A new life has begun, not only for the child, but also for the mother. As such, after a while the question arises: “How can I manage family and work now?”
More and more mothers take the plunge into self-employment whilst on maternity leave. Their motto: “Independence, flexibility, self-determination…”

ARTUS accompanies mothers in the founding of a company and we inform them on what things should be paid attention to.

1. The right plan
Good planning is just as important as the implementation of the idea. There are many points to clarify, such as whether a business registration is necessary and/or which business is possible to found. Should a mother insure herself? Is social insurance compulsory or is it possible to be exempt? What turnover should she aim for? Which reports must be declared on an ongoing basis for the company, and which target group should be done in advance.

2. Tax registration
Setting up a company entails an organisational and bureaucratic path right from the beginning. One should not forget to register with the tax office, the Chamber of Commerce, social security and any other necessary agencies.

3. The Individual Additional Income Limit
Mothers especially who are self-employed whilst on maternity leave should not forget their additional earnings limit in order to avoid the risk of a future repayment of their childcare allowance.

4. The Way to the Bank
A common question is whether a regular checking account can still be used? This question must be answered individually and depends — among other things — on the type of company, but also on the guidelines of the bank itself, which might prefer to offer those customers who have a regular income from self-employment a business account.

5. Insurance
Some businesses require mandatory liability insurance, which should be taken out. Independent from this, women should think about whether legal protection or business interruption insurance makes sense.

6. Gain an Overview of Current and Future Costs
Women founders can make use of some funding for the first three years their business is in operation. But what happens afterwards? Many women are suddenly faced with high back payments. Our tip, therefore, is to consider your current and future company costs so as to be prepared for any payments that might arise, current or back payments.

7. The Sideline Trap
If a mother is operating a small business on the side, in addition to being employed somewhere, the tax burden of the small company’s additional income should not be underestimated, since the tax burden is always calculated from the sum of all sources of income. Moreover, it is also important to remember that compulsory insurance from an employer relationship does not exclude possible further social insurance payments with the GSVG from operating a small business.

Of course, we will be by your side for all these questions, from the first idea you have for your business to supporting your ongoing operation.
So, arrange a Zoom meeting with us right away.Why is choosing us the right choice? Because our advisors are also mothers and understand your situation – exactly!
To make an appointment for a Zoom Meeting, or with us in person,
e-mail: info@artus.at or call +43 50 2788.

Paula Timofte is a tax advisor. She has been a part of the ARTUS team since 2018 and has been a business owner for many years. Furthermore, she is currently also focusing on working as a content creator.

ARTUS is an Austrian company specialising in tax consulting, HR management, auditing, accounting and management consulting. In addition to their seasoned team of experts, they maintain a network of competent partners to support companies at all stages of development.