TL;DR
Payday costs 2% (max 11,700 ISK/month) and is a DIY tool — you need to learn it and do everything yourself. FreelancePay costs 4.49% (max 16,900 ISK/month) and is a done-for-you service — we handle everything. The question is: is your time worth the difference?
1) Detailed Feature Comparison
| Feature | Payday.is | FreelancePay |
|---|---|---|
| Model | DIY tool — you do everything yourself | Done-for-you service |
| You create invoices | Yes, manually | Yes, simple form |
| Tax calculation | You do it | Automatic |
| Tax reporting to Skatturinn | You do it | Automatic |
| VAT reports | You do it | Automatic |
| Pension payments | You do it | Automatic |
| Bookkeeping | Built-in (you operate) | Not needed |
| Expense tracking | Manual | Automatic (Pro) |
| Same-day payout | No | Yes |
| Need to learn the system | Yes (courses 10–35k ISK) | No |
| Price | 2% max 11,700 ISK/month | 4.49% max 16,900 ISK/month |
| Best for | People who want control | People who want zero hassle |
2) When Payday Makes Sense 🔧
Payday is a good choice if you:
- Want full control and to understand where every ISK goes
- Are willing to spend 8–12 hours/month on bookkeeping
- Have employees or a more complex business structure
- Need detailed financial reports (income statement, balance sheet)
- Run an ehf. and need full bookkeeping
3) When FreelancePay Makes Sense ✨
FreelancePay is the right choice if you:
- Are a solo contractor who wants zero admin
- Want to get paid the same day your client approves the invoice
- Want taxes, VAT, and pension paid automatically
- Are a new contractor who does not want to learn bookkeeping
- Value your time more than the price difference
4) The Hidden Cost of DIY
Time cost
8–12 h/month on bookkeeping, tax filing, and VAT reports. At 6,000 ISK/h hourly rate = 48,000–72,000 ISK monthly time loss.
Training and course costs
Payday courses cost 10,000–35,000 ISK to learn the system. Hours spent on setup and learning.
Risk of mistakes
One missed VAT report = 5,000 ISK penalty. Late tax payment = 1%/day surcharge. Wrong calculated remuneration = back taxes.
5) The Third Option — An Accountant
Do it yourself
Monthly cost
0 ISK
Time spent
8–12 h
Risk of mistakes
High
Accountant / bookkeeper
Monthly cost
≈ 30,000–80,000 ISK
Time spent
4–8 h
Risk of mistakes
Medium
FreelancePay
Monthly cost
≤ 16,900 ISK/month
Time spent
0 h
Risk of mistakes
Low ✅
See also: FreelancePay vs accountant — detailed comparison →
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