Short answer
When your customer pays the invoice, PalkkaOnline deducts taxes and the service fee, then transfers the rest to your bank account. The money is typically in your account within 1–3 business days.
What happens to the invoice amount?
Imagine you did work and invoiced your customer 1,255 euros (1,000 euros + 25.5% VAT). Here is how the money is split:
Customer pays 1,255 euros → Payment arrives in PalkkaOnline's client funds account.
VAT 255 euros is withheld → This money is not yours. It belongs to the Tax Administration. PalkkaOnline stores it and remits it in the next VAT return.
Tax prepayment is withheld → E.g. 20% of your share = 200 euros. This goes towards your tax prepayments.
Service fee is deducted → PalkkaOnline's service fee (e.g. 4% of your income).
The remainder is settled to you → The rest is transferred to your bank account.
Example with numbers:
Gross invoice amount: 1,255 euros
VAT 25.5%: -255 euros
Tax prepayment 20%: -200 euros
Service fee 4%: -40 euros
Settled to you: approximately 760 euros
The exact figures are always shown in the settlement breakdown in PalkkaOnline.
What is the client funds account?
The client funds account is a separate bank account where your customers' payments are stored. It is required by law (PSD2 regulation) and means that your money is always kept separate from PalkkaOnline's own funds. This protects you.
Read more in the article What is a client funds account?
When does the money arrive?
Settlement happens automatically when the invoice is paid. Usually within 1–3 business days. PalkkaOnline does not hold your money unnecessarily — it is transferred as soon as the payment is processed.
What if I need the money sooner?
You can request an advance payment before the customer has paid the invoice. PalkkaOnline pays you part of the invoice amount in advance. When the customer pays, the advance is deducted from the settlement.
Read more in the article What is an advance payment and how do I request one?
How do I track my settlements?
All settlements are visible in the client funds account view in PalkkaOnline. For each invoice, you can see:
How much the customer paid
How much VAT and tax prepayment was withheld
How much service fee was deducted
How much was settled to you
When the settlement happened
What about enforcement?
If you have an enforcement order (ulosotto), the enforcement authority's share is automatically withheld from the settlement as required by law. This appears as a separate line in the breakdown. PalkkaOnline cannot influence the enforcement amount — it is based on the enforcement office's decision.