Now that the year is drawing to a close, the time has come once more to take stock of the various allowances and disbursements to your employees. The month of January is when you will have to file your payroll tax return, to render account of your overrun – if any – of the free margin as per WKR, the work-related expenses scheme.
Free margin
As an employer you have the option of presenting your staff with allowances and disbursements for up to 1.2% of your business’ aggregate wage bill – the “free margin” – without your business being affected fiscally. Any excess allowance and/or disbursement by contrast will be charged with a final levy of no less than 80%.
If you have already used up your business’ free margin, it might be an idea for you to book a venue for the Christmas office party rather than hosting it on your own premises, as this would enable you to side-step the WKR regime. Alternatively you could consider handing out New Year’s rather than Christmas gifts to the members of your workforce.
Are you not entirely sure whether you have applied the WKR rules in the correct manner or whether the allowances and reimbursements you have factored into your WKR equation are indeed eligible, or are you simply experiencing a need for advice? Don’t go on suffering in silence, but contact us before the year is out. Remember that we are there to iron out the kinks for you!
Dutch version: Bereid u voor op het toetsmoment voor de WKR!