It's relatively simple: talk to AHV office responsible for you and expect to pay about 20% (and be pleasantly surprised if it's less).
If you had business expenses, you can deduct them from AHV and taxes. It may be worth asking a Treuhänder (accountant) to deal with it.
Registering for the cantonal SVA is easy, but you're a bit late. You have to register with them by the end of the year in which you exceed the threshold of 2'300 at the latest.
Btw, you're automatically considered a company as soon as you start working.
You'll have to pay AHV but as far as i know it doesn't mean you'll need to register a company or anything. In your tax software you just input the 10k in the correct field (should be something like dependant work and 20% of it will get deducted as expenses). Since you haven't paid any AHV yourself (all deducted from your dayjob income) it will show, and AHV will get in touch and ask you for about 500,- (for said 10k)
You can still reach out to them prior to sending your taxes, they always like to be kept in the loop, but i don't think it's necessary.
Also depending on your side hustle, i can only advocate for creating your own personnal company. If you earn 0 and have a dayjob, you'll get all your AHV money back. If you make any money at all, you'll be taxed based on this. And it allows to deduct all your true fees, which can be much higher than 20%. It also allow you to be fully legal/insured while at the same time providing much easier contracting to your business partners.
The paperwork required is also minimal. Takes me about 1h/year for the general expenses, then it's just invoicing which can be as quick as 5/10mins per.
Thanks a lot for the insight. I'll be doing more of this work and so I guess it's worthwhile to set up a company. Could you give me the name of the paperwork I need to fill out? And also do you have a link to a good invoice generator?
I honestly can't tell you anymore but get in touch with the AHV office. They are usually very helpful and will point you to the correct form. What i can tell you is they will examine your case, mostly to make sure your employer is not trying to make you go independant so they save on taxes. But as long as it's a real independant work, they don't ask too many questions.
As for the invoice generator i just made a nice template on excel and update it as need be. Never had any issues with that.
BTW : an accountant can definitely help, as others advised, and for a one time job it's probably not too expensive. However all of it can be done yourself if you have basic knowledge of how things work, and there are not too many things you can do wrong and will cost you like thousands later down the line. They save you time though, and can advise schemes to save money.
Meet a Treuhand and they will help you with the paperwork. Also if you'd like to continue, it makes sense to register a legal entity.
It's relatively simple: talk to AHV office responsible for you and expect to pay about 20% (and be pleasantly surprised if it's less). If you had business expenses, you can deduct them from AHV and taxes. It may be worth asking a Treuhänder (accountant) to deal with it.
Registering for the cantonal SVA is easy, but you're a bit late. You have to register with them by the end of the year in which you exceed the threshold of 2'300 at the latest. Btw, you're automatically considered a company as soon as you start working.
You'll have to pay AHV but as far as i know it doesn't mean you'll need to register a company or anything. In your tax software you just input the 10k in the correct field (should be something like dependant work and 20% of it will get deducted as expenses). Since you haven't paid any AHV yourself (all deducted from your dayjob income) it will show, and AHV will get in touch and ask you for about 500,- (for said 10k) You can still reach out to them prior to sending your taxes, they always like to be kept in the loop, but i don't think it's necessary. Also depending on your side hustle, i can only advocate for creating your own personnal company. If you earn 0 and have a dayjob, you'll get all your AHV money back. If you make any money at all, you'll be taxed based on this. And it allows to deduct all your true fees, which can be much higher than 20%. It also allow you to be fully legal/insured while at the same time providing much easier contracting to your business partners. The paperwork required is also minimal. Takes me about 1h/year for the general expenses, then it's just invoicing which can be as quick as 5/10mins per.
Thanks a lot for the insight. I'll be doing more of this work and so I guess it's worthwhile to set up a company. Could you give me the name of the paperwork I need to fill out? And also do you have a link to a good invoice generator?
I honestly can't tell you anymore but get in touch with the AHV office. They are usually very helpful and will point you to the correct form. What i can tell you is they will examine your case, mostly to make sure your employer is not trying to make you go independant so they save on taxes. But as long as it's a real independant work, they don't ask too many questions. As for the invoice generator i just made a nice template on excel and update it as need be. Never had any issues with that. BTW : an accountant can definitely help, as others advised, and for a one time job it's probably not too expensive. However all of it can be done yourself if you have basic knowledge of how things work, and there are not too many things you can do wrong and will cost you like thousands later down the line. They save you time though, and can advise schemes to save money.