Why do I receive less than I invoiced?

This often causes confusion - and completely understandably so. The final amount on the invoice sent to the client and the pay deposited into your account are not the same thing, because the entire invoiced amount is not your personal income.

Taxes and other costs are deducted from the invoice amount first, and only after that is the payable wage formed.

This is how money moves from invoice to wage

1. The client pays the invoice total

The invoice total is the amount the client pays. It may include value-added tax (VAT), which is remitted to the tax authorities by us.

2. What remains is the portion that affects your wage

Once VAT and service-related costs have been accounted for, what remains is an amount (gross wage) from which the wage is calculated.

3. Statutory deductions are made from the gross wage

The following, for example, are deducted from the gross wage:

• withholding tax according to your tax card
• any Maksuvahti or other Truster add-on services
• health insurance contribution
• other possible statutory payments

4. Net wage is paid to your account

The end result is your net wage - the amount that's transferred to your bank account and available for you to use.

When pricing your work, think in net terms

If you're aiming for a specific amount in your account, the price you invoice needs to be higher than that. This way you avoid surprises, and the work leaves you with a genuinely worthwhile payment.

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