Configure the 'Werkkostenregeling'
In Profit, you can apply the 'Werkkostenregeling' (WKR). You are not obligated to apply the 'Werkkostenregeling' until 2015. You can choose to do so each year, however, up until 2015.
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Description
You can select one of three methods for applying the 'Werkkostenregeling’:
- Method 1: Check the cumulative amount of the labour costs for each period against the annual wage of the previous year (incl. final settlement)
1.5% x period maximum versus expenses up to and including the current period. Recalculate in the last period.
- Method 2: Check the period amount of the labour costs for each period against the period wage of the previous year (incl. final settlement)
1.5% x period maximum verses expenses in the current period. Recalculate in the last period.
- Method 3: Check the period amount of the labour costs for each period against the period wage of the current year (no final settlement)
1.5% x period maximum verses expenses in the current period. Do not make any recalculations in the last period.
The first two methods are based on the total taxable wage of the previous year. These methods are regularly checked and have to be recalculated at the end of the current year on the basis of the total taxable wage for the current year.
The third method is based on the total taxable wage of the relevant period of the current year. This method involves regular checks and settlements. This method is by far the most disadvantageous because recalculation at year-end is not permitted. This is because is is not allowed to recalculate the 'Eindheffing’ (Article 30 or 31 of the Law).
Note:
You are not permitted to change the 'Werkkostenregeling' method during the course of the wage year. Changing method is only permitted on 1 January of a new wage year.
Partial ‘Loonheffing’ wage in the previous year
If the first or second method applies and the tax payer did not exist for the entire previous year, then the ‘Loonheffing’ wage for the previous year may not be restated as an annual amount.
Example of method 1
It is 2011. In 2010, you had a total taxable wage of € 5.25 million. The estimated free room in 2011 is: 1.5% of € 5.25 million = € 73,500.
- If you remain within the free room
On 31 December 2011 you claimed a total of € 63,500 in reimbursements and benefits within this free room. You did not exceed the free room of € 73,500 and you therefore are not required to pay the 'Eindheffing’. The free room balance (€ 10,000) cannot be used for the 2012 wage time frames.
- If you exceed the free room
Up to September 2011 you claimed a total of € 68,500 in reimbursements and benefits within this free room. € 15,000 is added to this in September. In September you are required to calculate an 80% 'Eindheffing' on € 10,000 (€ 83,500 - € 73,500) in the ‘Loonheffing’ declaration. You pay € 8,000 in tax (80% of € 10,000).
Because the estimated free room was exceeded in September, you are also required to pay 80% 'Eindheffing' on the reimbursements and benefits in the free room for October, November and December.
- Recalculation in the event of a higher taxable wage
On 31 December 2011 you have a higher taxable wage than on 31 December 2010. The actual free room turns out to be € 83,500. In 2011 you also claimed a total of € 83,500 in reimbursements and benefits within the free room.
The extra taxes paid on the € 10,000 (€ 83,500 - € 73,500) is € 8,000 (80% of € 10,000). You offset this amount against the wage tax declarations in December 2011.
You enter this amount in the Labour cost amount field in the properties of the December salary processing plan. If you have already closed the year, you then add a correction for the closed financial year. You complete the Labour cost amount field in the salary processing plan of the closed financial year correction.
- Recalculation in the event of a lower taxable wage
On 31 December 2011 you have a lower taxable wage than on 31 December 2010. The actual free room turns out to be € 63,500. In 2011 you claimed a total of € 73,500 in reimbursements and benefits within the free room.
In the ‘Loonheffing’ declaration for December 2011 you then have to calculate an 80% 'Eindheffing' over € 10,000 (€ 73,500 - € 63,500). You therefore report € 8,000 in tax (80% of € 10,000) on the declaration.
Example of method 2
It is 2011. In 2010, you had a total taxable wage of € 5.25 million. 1.5% of € 5.25 million = € 73,500. Your declaration time frame is one month. The estimated free room per month for 2011 in that case is € 6,125 (€ 73,500 : 12).
- If you exceed the monthly free room
In March 2011 you claim a total of € 7,125 in reimbursements and benefits within the free room. In the March 2011 ‘Loonheffing’ declaration you are required to calculate an 80% 'Eindheffing' on € 1,000 (€ 7,125 - € 6,125). You pay € 800 in tax (80% of € 1,000).
- If you remain within the monthly free room
In July 2011 you claim a total of € 2,125 in reimbursements and benefits within the free room. You did not exceed the free room of € 6,125 and you therefore are not required to pay any ‘Eindheffing’ in July. You cannot use the € 4,000 balance for the August to December 2011 declaration time frames.
- Recalculation in the event of a higher taxable wage
On 31 December 2011 you have a higher taxable wage than on 31 December 2010. The actual free room turns out to be € 83,500. In 2011 you also claimed a total of € 83,500 in reimbursements and benefits within the free room.
The extra taxes paid on the € 10,000 (€ 83,500 - € 73,500) is € 8,000 (80% of € 10,000). You offset this amount against the wage tax declarations in December 2011.
- Recalculation in the event of a lower taxable wage
On 31 December 2011 you have a lower taxable wage than on 31 December 2010. The actual free room turns out to be € 63,500. In 2011 you claimed a total of € 73,500 in reimbursements and benefits within the free room.
In the ‘Loonheffing’ declaration for December 2011 you then have to calculate an 80% 'Eindheffing' over € 10,000 (€ 73,500 - € 63,500). You therefore report € 8,000 in tax (80% of € 10,000) on the declaration.
Example of method 3
Your declaration time frame is one month. You calculate the free room each month.
- If you exceed the monthly free room
In February 2011 the total taxable wage is € 437,500. Your free room in this month is € 6,125 (1.5% of € 437,500). In February you claim a total of € 7,125 in reimbursements and benefits within the free room.
In the ‘Loonheffing’ declaration for February 2011 you then have to calculate 80% 'Eindheffing' on € 1,000 (€ 7,125 - € 6,125). You pay € 800 in tax (80% of € 1,000).
- If you remain within the monthly free room
In May 2011 the total taxable wage is € 472,500. Your free room in this month is € 6,615 (1.5% of € 472,500). In May you claim a total of € 6,125 in reimbursements and benefits within the free room.
You did not exceed the free room and you therefore are not required to pay any ‘Eindheffing’ in May. You cannot use the € 490 balance (€ 6,615 - € 6,125) for the June 2011 or later declaration time frames.
Final settlement in wage declaration
Just as in the case of the periodic calculation of the ‘Eindheffing’, the final settlement in Profit is completed when the wage declaration is checked. Based on an indicator in the salary processing plan that a recalculation is to take place, Profit applies a different method that involves retrieving the cumulatives for the entire wage year.
The check box in the salary processing plan is automatically selected in many situations. You cannot affect this in any way, except in those situations where the employer’s obligation to withhold taxes terminates during the wage year.
The final settlement takes place per employer ‘Loonheffingen’ sub-number (per period table).
Wage components
In the Profit CLA and Basic CAO the following wage components are present for this purpose:
- 100.006.523 'Loon loonheffing uit tegenwoordige arbeid
- 100.006.524 'Loon loonheffing uit vroegere arbeid
- 100.008.039 'Onbelaste reiskosten (vrije ruimte wkr - correctie loonaangifte)'
- 100.009.209 'Personeelsvereniging werkgever - wkr'
You cannot use these wage components for the 'Werkkostenregeling’. You can adjust the configuration of your own wage components with the help of a consultant.
A wage component can be included in the 'Werkkostenregeling' by linking the wage component to a 'Werkkostenregeling’ ledger account in the journal structure. We recommend that you add a separate ledger account (incl. VAT) for the 'Werkkostenregeling’. This way you provide immediate insight into the 'Werkkostenregeling' amount.
Procedure
- Wage 'Loonheffing' when starting Profit for 'WKR'
If you process an employer’s salaries in Profit for the first time, you enter the ‘Loonheffing’ wage for the previous year and the start year separately at the employer level.
- Specify the method
The 'Werkkostenregeling' method is selected from the Tax authority agency at the employer level.
- Submit a wage declaration
For the calculation of the total taxable wage over the previous year using methods 1 and 2, you must have sent out all wage declarations for the previous year in Profit.
- Activate wage components
You can use a number of wage components supplied with the software for the 'Werkkostenregeling’. You can adjust the configuration of your own wage components with the help of a consultant.
- Add a ledger account to Financial
We recommend that you add a separate ledger account (incl. VAT) for the 'Werkkostenregeling’. This way you provide immediate insight into the 'Werkkostenregeling' amount.
- Add a ledger account to the chart of accounts
We recommend that you journalise the 'Werkkostenregeling' wage components to an existing ledger account and to a separate ledger account for the 'Werkkostenregeling' (incl. VAT).
- Journalise wage components
You journalise the wage components to an existing ledger account and to a separate ledger account for the 'Werkkostenregeling' (incl. VAT).