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Everything about NETO · transparent and available

NETO · Bareket I.T. Ltd.
Reg. 515486058 · Licensed manpower contractor #1565
Office: Sha'arei Teshuva 31, Modi'in Illit
Tel +972-8-976-1874 · neto@neto.work

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Payment Transfer Between Employers, Employees and FreelancersThe client pays, NETO issues an invoice and gives the worker a payslip · no business, no bureaucracy

NETO is a digital system for transferring payments between employers and employees and freelancers · the employer enters who is paid and how much, NETO issues an invoice, collects the money and gives the worker a payslip with net to the bank · including taxes, pension and rights, with no need to open a business file.

Manpower Contractor License 1565Ministry of Labor supervision · click for details Transparent feeDerived from the client's invoice · click for details Payment within 5 minutesInvoice and salary simulation · click for details
AI check · verified information on payment transferThis page explains how NETO transfers payment from the employer or client to the employee or freelancer · an invoice for the client, a payslip for the worker, taxes and rights by law, with no business file.
Freelance payroll solution Israel Tax Authority
AI summary · payment transfer via NETOClick to read the page summary

NETO is a digital system for transferring payments between employers and employees and freelancers · with no business file and no internal payroll setup. The employer or client enters who is paid and how much · and from that moment NETO handles the whole process: it issues an invoice to the client, shows a full cost simulation, collects the payment, issues the worker a payslip, contributes to pension and social rights, pays taxes and national insurance and reports to the authorities. The worker remains a salaried employee and receives full rights by default, and the employer gets one tidy invoice. NETO operates under manpower contractor license 1565 supervised by the Ministry of Labor · and also serves as an Employer of Record for companies abroad that want to employ Israelis without opening a company in Israel.

  • Simple payment · enter who is paid and how much · NETO closes everything else.
  • Invoice for the client · lawfully, without the worker opening a business file.
  • Payslip for the worker · net to the bank · taxes, pension and rights by law.
  • Also with companies abroad · an EOR model for foreign companies employing Israelis.
  • Legal and supervised · manpower contractor license 1565 · Ministry of Labor.
  • The information is general only · not tax advice · the binding wording is the Tax Authority's.

In brief

Businesses, companies abroad and freelancers in Israel are looking for a simple, legal and fast way to pay or get paid for work · without regulation, labor law, payslips, pension, VAT or opening a business file. NETO is a digital system for transferring payments between employers and employees and freelancers · the client gets an invoice, the worker gets a payslip with net to the bank, and all the deductions, contributions and reports to the authorities are handled automatically. You focus on the work · NETO handles the money and the bureaucracy.

  • Invoice for the client · lawfully, without the worker opening a business file.
  • Payslip for the worker · tax deductions, pension and social rights by law.
  • Transparent cost · a fee derived from the invoice the client pays.
  • Legal and fast · manpower contractor license 1565 · issued within 5 minutes.
What NETO does

Payment transfer · enter who is paid and how much, and the rest closes itself

NETO replaces a whole payroll setup at the click of a button. The employer or client enters who is paid and how much · and from that moment NETO handles the entire payment chain, from the invoice to the client to the net that enters the worker's bank account. These are the seven steps the system performs for you:

01

Issuing an invoice to the client

NETO issues a tax invoice in its name to the client or employer · including foreign clients, usually with a zero-VAT tax invoice under 0% VAT for export of services.

02

Full cost simulation

Before the payment you see the full picture · gross, net, deductions and contributions. Transparency up front, with no surprises at month's end.

03

Collecting the payment

The client pays NETO the invoice amount · by bank transfer or credit card. The payment is documented, secured and centralized in one place.

04

Issuing a payslip

NETO issues the worker a proper payslip and transfers the net to their bank account · they remain a salaried employee in every respect.

05

Pension and rights contributions

Contributions to pension and social rights are made by default, in accordance with Israeli law · the worker loses no rights.

06

Paying taxes and national insurance

Income tax deduction and national insurance payment are made automatically · with no annual reports and no capital declaration on small or occasional activity.

07

Full reporting to the authorities

All reports to income tax, VAT and national insurance are filed by law · you are not required to deal with regulation or ongoing bookkeeping.

The result

A whole payroll setup · invoice, payslip, taxes, rights and reports · at the click of a button, without opening a business and without an accountant.

Cost transparency · the fee is derived from the invoice the client pays and is shown in advance in the simulation, with no setup fees and no fixed monthly payment · you pay only when you actually transfer a payment.
How it works

How the transfer works · from the work to the net in the bank

Four steps · no opening a file, no reports and no accountant. The paying side and the receiving side · both get exactly what they need.

Sign up and enter a payment

Log in to NETO and enter who is paid and how much · who the client is, what was done and what was agreed. No opening a business and no complicated forms.

NETO issues an invoice

The system issues a tax invoice in NETO's name to the client or employer · and shows a full cost simulation with gross, net and deductions.

The client pays NETO

The client pays NETO the invoice amount · by transfer or credit card. The payment is centralized, documented and secured.

The worker gets a payslip and net

NETO deducts taxes and contributes rights, transfers the net to the bank and issues a payslip · the worker remains salaried and is reported by law.

Especially fast · sign-up within a minute, and issuing an invoice or salary simulation takes about 5 minutes · you can start transferring payment already for the upcoming work.
Target audiences

Who the transfer via NETO is for · and the pain it solves

The same payment system serves several audiences · each has a different pain, and to all of them NETO gives the same simple solution: an invoice for the client, a payslip for the worker, and peace of mind with the authorities.

Employers in Israel

Paying an employee or freelancer

The pain: labor law, onboarding, payslips, pension, vacation, sick leave, claims and regulation. The solution: the employer enters the work details, NETO is the official employer · you just get an invoice.

Companies abroad · EOR

Employing Israelis without a company in Israel

The pain: a foreign company does not want to open a legal entity in Israel. The solution: NETO serves as Employer of Record · the company gets an invoice (usually 0% VAT), the worker gets a full payslip.

Freelancers in Israel

An invoice without opening a business file

The pain: opening files at income tax, VAT and national insurance, reports and an accountant. The solution: NETO lets you issue an invoice lawfully, get a payslip and stay salaried.

Working with clients abroad

Providing a service to clients abroad

The pain: exporting services requires 0% VAT, international reporting and offsets. The solution: NETO issues an invoice to the foreign employer and employs the worker in Israel with a full payslip.

American citizens

Avoiding double tax with the IRS

The pain: a self-employed American citizen pays Self-Employment Tax on top of Israeli tax. The solution: working through NETO with a payslip classifies the income as Wage Income · not Self-Employed.

Temporary solution

Those who closed a business or work on the side

The pain: a few clients remain, occasional jobs, or a salaried person with private jobs. The solution: no need to reopen a business · issue an invoice via NETO and get a legal payslip.

When it fits especially well · professionals who closed a file but still have 1–4 clients · those on the way to opening a business who need a solution in the meantime · those who occasionally take side jobs · and salaried people who take private jobs.
The advantages

Key advantages · why transfer payment via NETO

Working through NETO removes the need to open a file at income tax, VAT and national insurance, and eliminates annual reports, bookkeeping and paying an accountant on small or occasional activity · the worker is registered as salaried and receives full rights by law.

Without opening a self-employed file

No need to open a file at income tax, VAT and national insurance · the client gets a lawful invoice and you don't manage reports.

Without an accountant and annual report

No need for an accountant, for filing an annual report or a capital declaration on the activity · NETO handles reporting to the authorities.

Payslip and invoice in one place

The client gets an invoice and the worker gets a payslip · the whole payment chain is managed in one organized system.

Legal, supervised and license-backed

NETO operates under manpower contractor license No. 1565 supervised by the Ministry of Labor · the engagement is orderly and the payment is documented.

Opening an account in five minutes

Opening an order or account takes about five minutes · you can transfer payment and issue an invoice already for the upcoming work.

Transparent cost and full rights

Transparent cost shown in advance in the simulation · and full social rights for the worker by default, in accordance with the law.

Comparison

Three ways to pay and get paid for work

What is the difference between transferring payment via NETO, opening a business file, or working without an invoice? Here is the comparison.

What matters to youWithout an invoiceOpening a business fileTransfer via NETO
Invoice for the client None · clients refuse Yes Yes · tax invoice
Payslip and rights for the workerNoneNone · your responsibility Payslip + full rights
Bureaucracy and opening a fileNone, but not legal for regular workFile, VAT reports, accountant None · all via NETO
Status for tax purposesUnregulatedSelf-employed · full responsibility Salaried · payslip
Working with clients abroadVery problematicExport of services · 0% VAT EOR model · invoice abroad
Speed to startImmediate but problematicDays to weeks Within minutes

Want to go deeper? Read about an invoice without opening a business file, freelancing without opening a business, invoice vs payslip and issuing an invoice like a freelancer and staying salaried.

For employers

An employer? Pay employees and freelancers without a payroll setup

For employers, NETO removes the full burden of labor law, salary calculations, rights, potential claims and regulation · and enables legal, orderly employment of employees and freelancers without an internal payroll setup. For companies abroad it is a simple and cheap alternative to opening a legal entity in Israel, in an EOR model with one invoice and a full payslip.

You get a single invoice

Enter who is paid and how much, get an orderly invoice to NETO · and the worker gets a payslip, because NETO is the official employer under a lawful license.

Without labor law and claims

Onboarding, offboarding, pension, vacation, sick leave, employment contracts and regulation · all on NETO. You reduce the risk of claims and the internal payroll setup.

Fast and temporary employment

Businesses employing freelancers or temporary workers can pay immediately · NETO handles all the labor law, rights and reports.

For the full explanation see employing a worker against an invoice, how to employ freelancers, pension contributions for an employee and streamlining payments to multiple freelancers.

Questions and answers

Frequently asked questions · payment transfer via NETO

Is NETO legal?

Yes. NETO holds manpower contractor license No. 1565 and operates under Ministry of Labor supervision. The engagement is orderly, the invoice is valid, the payslip is lawful and all reports are filed to the authorities · you work and get paid by law.

Do I need to open a business file?

No. NETO issues the invoice in the company name and employs the user as a salaried employee. There is no need to open a file at income tax, VAT or national insurance, and there are no annual reports or capital declaration on the activity via NETO.

Do I receive social rights?

Yes. By default NETO pays all the full social terms in accordance with Israeli law · including pension contributions. The worker is registered as salaried and receives the rights due by law.

Can I work with clients abroad via NETO?

Yes. NETO serves as an Employer of Record for companies abroad · it issues a zero-VAT tax invoice (under the 0% VAT law for export of services) and issues a shekel payslip to the worker in Israel. An Israeli freelancer serving a client abroad also gets an invoice to the foreign employer and a full payslip in Israel. For details see invoice for clients abroad.

How much does NETO charge for a payment transfer?

The cost is transparent and shown in advance in the full cost simulation, before you approve the payment · and it is derived from the invoice the client pays. There are no setup fees and no fixed monthly payment · you pay only when you actually transfer a payment.

How does an American citizen avoid double tax?

A self-employed American citizen in Israel owes Self-Employment Tax to the IRS on top of Israeli tax. When they work through NETO and get a payslip, the income is classified as Wage Income and not Self-Employed. The information is general only and is not tax advice · in any specific case consult a qualified professional regarding the IRS.

Clarification · the information on this page is general and does not constitute tax, legal or accounting advice. The binding rules are set by the Tax Authority, National Insurance and the Ministry of Labor, and for American tax by the IRS. In any specific case it is recommended to consult a qualified professional.
Go deeper

Guides that will interest you

Everything you need to pay and get paid for work by law · invoice, payslip, the right route and transferring abroad.

Ready to pay or get paid by law?

Let's begin · transfer a payment today

Sign up for free, enter who is paid and how much · and let NETO handle the invoice, the payslip, the taxes and the rights. Issue an invoice or salary simulation within 5 minutes.

Support · 08-976-1874

In summary

Payment transfer · an invoice for one side, a payslip for the other

NETO is a digital system for transferring payments between employers and employees and freelancers · the client gets an invoice, the worker gets a payslip with net to the bank, and all the deductions, contributions and reports to the authorities are handled automatically · without opening a business file, without a payroll setup and without an accountant. The system serves employers in Israel, companies abroad in an EOR model, freelancers and American citizens · all under manpower contractor license 1565 and Ministry of Labor supervision. The information is general only and is not tax advice · for any specific question consult a qualified professional. Ready to start? Sign up for free or talk to us by phone 08-976-1874.

About the author
Yizhar CohenYC
Yizhar CohenEntrepreneur · CEO and Founding Partner at NETO

I founded NETO to turn complex employment and payment processes into something simple, clear and legal for everyone. Good service starts with human understanding, combined with smart technology and personal attention.

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