The minimum amount of YEL (pension insurance for entrepreneurs) is determined by your job description; pension companies have tables for minimum amounts. There is no upper limit.
It depends on the company form how the matter is handled.
In any case, if you own the company entirely, it practically doesnât matter who makes the payment if the goal is only to calculate the optimal salary level.
In a limited company, it goes entirely into the companyâs expenses. Yes, there will be differences in how much it costs and how it affects the companyâs taxable income, etc. These depend heavily on how much profit the company makes and how one handles/optimizes salary and dividends.
I own 100% of my company. The company, of course, pays those fees. Thereâs certainly a lot more that could be optimized, but itâs good to pay taxes too⌠Except for the amount of Yle tax (YLE-vero), itâs truly amazing. At least I donât belong to the church.
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In practice, YEL (entrepreneurâs pension insurance) is an expensive payment in relation to the pension benefits it provides. I looked into this for myself back in the day and keep it at the absolute minimum. I trust that I can invest much better, and when I die, the money will go to my relatives, not to the pension company.
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sometimes, if youâre no longer generating income in the same way, being paid a salary is a good option. But if you have income, you should also have expenses.
Thinking that if the company were to focus on capital allocation at some point, then dividend income would be in the profit and salary could then be taken out at a very low tax percentage, depending of course on how much money would need to be taken from the company.
For now, however, normal business operations continue.
But these kinds of things could be happening at Aalto Group if entrepreneurs become employees 
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YEL affects paternity and maternity allowances and sick pay. Thatâs why it can be worthwhile to pay something for it.
Hey, a small business owner usually doesnât pay themselves such things, at least not in my circle of acquaintances.
Just think, what if youâve been paying a pretty decent YEL (Entrepreneursâ Pension Act) contribution and then you stay home to care for a child (you donât pay yourself a salary then), and Kela (the Social Insurance Institution of Finland) pays you daily allowance based on your YEL income. Then, when you return to work, you can pay yourself a salary to make up for it⌠or rather, you get that Kela compensation as a bonus.
You pay tens of thousands to get a few tens of euros a day? That doesnât sound like a wise use of money.
- This is indeed messing up Aaltoâs thread, moderators can probably move these elsewhere
- A voluntary pension insurance would have been a more sensible investment back in the day
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Oli - regret it in hindsight, as I didnât take it. I could have gotten the payments under business expenses.
Juhana and I conducted an IPO analysis of Aallon Group. In our opinion, the company is listing at a very reasonable price, considering the defensiveness of its business and its low-risk profile. Please read the report, and if you have any questions, weâll do our best to answer them. 
Sijoitustutkimus: Aallon Group - Inderes
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How is the software side handled at Aalto Group? Is it in-house? Or are they just acting as a distributor, meaning someone else owns the software?
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Aallon Groupâs own system development
⢠Focus on systems that produce cost-efficiency and customer value.
⢠Partial automation of accountantsâ work frees up human resources for providing higher value-added services.
⢠Increased efficiency and growth of value-added services enable gradual scalability of profitability.
Backend systems as off-the-shelf software
⢠Utilization of the most appropriate and best off-the-shelf software on the market.
⢠In our view, off-the-shelf software avoids large investments in proprietary accounting software.
⢠We estimate that significant system integrations are not necessary in connection with acquisitions.
⢠We also estimate that new customer acquisition costs are low, as the customer does not need to be integrated into our own backend system.
⢠At the same time, however, we believe that some of the scaling benefits enabled by digitalization will not be achieved in the long term.
âŚAccounting is done on top of commercial software
As backend systems for accounting and payroll, the company uses the most suitable commercial off-the-shelf software for each purpose (e.g., Tikon, Fivaldi, Nova), on top of which the company can build its own automated solutions. For example, the company has implemented an AI robot whose tasks include posting bank statements.
-Inderes report
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Thanks, how does such an arrangement scale vs. own software?
Open that report and type âscaleâ into the search, for example, and youâll get 38 resultsâŚ
I couldnât find an answer to that â how does it differ from an accounting firm with in-house software?
Also open Talenomâs report and compare the operating profit percentages. Other factors also affect it, and I see a bit more scaling advantages for Talenom than Inderes does for Aallon, but it gives some direction. Of course, Talenom also has other scaling advantages than âautomated accounting,â which can also be performed with other software.
Scaling advantages arenât even the only things that in-house software brings; there are other reasons for using it. However, it makes no sense for a company of this size to start developing its own gadgets, as it hasnât gone very well for Heeros either.
I personally wouldnât focus on this point when making an investment decision, but everyone is free to value whatever they consider important when making their investment decision.
Yeah, it doesnât automatically make it a good or bad investment, but it probably affects the acceptable valuation level.
There is âa bitâ of a difference in the valuations of Aalto and Talenom.
One would think there would be some connections to Vincit, so I would buy all modding parts from there at least⌠I wouldnât put together a 50-person IT team, as Talenom did in the past.
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