Is your company already fully equipped at the WKR? Ten questions and answers about this important tax regulation.
1. What is the labor costs scheme?
The labor costs scheme (WKR) is a tax scheme that replaces the old schemes for reimbursements and benefits. Within the labor costs scheme, everything that you provide to an employee or reimburses up to the wage. This not only concerns wages in money, but also wages in kind. For example, a Christmas package for your staff within the labor costs scheme is seen as wages.
2. What advantages does this scheme offer?
The labor costs scheme brings several benefits. In the first place, as an entrepreneur, you do not have to go into a large number of schemes for reimbursements and benefits. Furthermore, it is no longer necessary to break down all expenses per employee. You have the disposal of one free space within which you can place allowances and benefits from all employees.
3. What is meant by free space?
The free space is the percentage of the total taxable wage (or flat rate) that you may spend on untaxed allowances and benefits for your employees. Be careful that you do not go over there, because that costs you a lot of money. You pay wage tax in the form of a final levy of 80 percent on the amount above the free space. The flat rate is now 1.2 percent.
4. Can you put everything in the free space?
The free space has a limitation that must prevent improper use of this. The customary test stipulates that a fee or provision may not deviate more than 30 percent from what is customary in similar circumstances. The tax authorities assume that a reimbursement or provision of a maximum of 2400 euros per person per year is customary in any case.
5. What does not happen at the expense of free space?
Some allowances and benefits do not come at the expense of free space. These are the so-called targeted exemptions and nil valuations. For example, there is a specific exemption for actual costs of public transport and allowances for own transport of up to 0.19 euros per business kilometer. There is also a nil valuation for facilities in the workplace, such as the fixed computer.
6. What about consumptions and meals?
The labor costs regulation distinguishes between consumptions and meals. Consumptions are for example coffee, tea, pastries, fruit or other snacks. If you provide them in the workplace and they are not part of the meal, they are unloaded.
Meals as part of temporary accommodation costs are untaxed, so that they are not at the expense of free space. This is the case, for example, for business trips or business meetings with customers outside the fixed workplace. This also applies if the meals have a more than incidental business character. This is in any event the case if an employee is unable to eat at home by work between 5 and 8 pm, for example due to overtime or shopping evenings.
7. Is a staff party unloaded?
At a staff party the location of the party is important. If it takes place at the workplace, the consumptions provided are untaxed. This also applies if you have employees from other locations, locations or offices on the floor. In addition, parties are held at an external location with a third wage of the employee, such as in a party center. Of course it is also possible to accommodate this in the free space.
8. What about the bike of the case?
A bicycle of the business or bicycle plan for your staff is still possible within the labor costs scheme. The difference is that there is no longer a special bicycle arrangement. If you reimburse or provide a bicycle, you can from now on make this fiscally attractive as long as this reimbursement or provision fits within the free space. You have to be careful that you do not go over there, because you can expect a hefty final tax.
9. Can you continue to offer company fitness?
Some employers pay their staff a fee for a nearby gym. This is within the wage costs scheme of the employee, but you can also include this amount in the free space. In addition, you can also set up a fitness room yourself in the workplace. This is then unloaded, but then it may only be condition or strength training. Other facilities such as a sauna are the wages of the employee, or you take it up in the free space.
10. What does employers still have to do?
Have all changes already been made to your company by the labor costs regulation? It is especially important that reimbursements and benefits are no longer recorded per employee. All employment conditions must also be adjusted.