‘Arbeidskorting’

People often think that the ‘Arbeidskorting’ as calculated on the annual statement is too high. This is, however, not the case.

For the calculation of the 'Arbeidskorting’, Profit takes into account the wages for the 'Loonheffing' at the normal rate. The ‘Arbeidskorting’ is only applied to the ‘Loonheffing’ wage, which is settled with the ‘Loonheffing’ based on the table.

Although the ‘Loonheffing’ wage and the ‘Arbeidskorting’ are a fixed annual amount, that does not mean it has been calculated by Profit. That is because per period Profit determines the 'Arbeidskorting’ and only over the wage that is taxed according to the table. The special rate therefore is not included in this.

When the employee completes the 'IB' declaration, a message can appear stating that the 'Arbeidskorting' is incorrect. The declaration explains that this may be caused by reimbursements that have been calculated using the special rate. In that case, the employee has had too much 'Arbeidskorting’ and the ‘IB’ declaration settles this.

Example:

The normal wage of an employee is less than € 40,248. This employee’s holiday allowance, bonuses, 13th month, overtime or other rewards are taxed based on the special rewards table. This causes the amount to exceed € 40,248. When completing the ‘IB’ declaration, the employee gets the message that too much 'Arbeidskorting’ has been settled. This is called the ‘terugval Arbeidskorting'.

When determining the ‘Arbeidskorting’, you therefore cannot take into account only the total ‘Loonheffing’ wage, as this includes the special rate.