'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 until 2015.

Description

You can apply the 'Werkkostenregeling' starting on 1 January 2011. The 'Werkkostenregeling' allows you to spend a maximum of 1.5% of your total taxable wage on non-taxable reimbursements and allowances for your employees. An 'Eindheffing' of 80% is calculated on the remainder. You can also make use of specific exemptions. With the specific exemptions you can continue to reimburse or provide certain things untaxed.

Every year until 2015, you have the option of applying the 'Werkkostenregeling’. If you decide not to apply the 'Werkkostenregeling' until 2015, the old legislation continues to apply. Following a political evaluation, the 'Werkkostenregeling' will be implemented for all employers starting in 2015 and the old legislation will then expire definitively.

In a diagram, the 'Werkkostenregeling' looks as follows:

Key 'Werkkostenregeling' definitions are as follows:

  • Intermediary costs

    These are expenses incurred by the employee by order of and for the account of the employer (expenses to be declared). On the website of the tax authority you can find examples of this.

  • Specific exemptions

    The legislative has designated specific non-taxable reimbursements and benefits. The website of the tax authority includes these exemptions.

  • Labour costs

    These are expenses incurred by the employee in the context of his/her employment.

  • 'Werkkostenforfait'

    The wage that you reimburse or provide without tax as long as it remains within the 1.5% exemption limit of the employer’s total taxable wage. The employer does not pay an 80% 'Eindheffing' on this wage.

Salary processing plan

If you apply the 'Werkkostenregeling’, for every period you must specify the amount of the reimbursements and/or benefits that you are claiming under the ‘Werkkostenregeling’ in Profit. When the wage declaration is checked, this amount is verified on the basis of the total taxable wage.

You determine the composition of the amount of the labour costs (all reimbursements and/or benefits that come under the ‘Werkkostenregeling’) on the basis of the financial accounting system (incl. VAT) and the current salary processing (assuming that the current period has not yet been journalised). You enter this amount in the (main) salary processing plan.

In case of weekly wage processing with a four-week declaration cycle, it is sufficient to report the cumulative amount of the labour costs in one of the four weeks. The wage declaration retrieves the cumulative of these four weeks.

The zero declarations therefore do not create an exception in the calculation of the 'Eindheffing' for the 'Werkkostenregeling’. In actual practice you can enter the amount in labour costs only after the salary processing. As a result, in practice the 'Eindheffing' for the 'Werkkostenregeling' is always zero for zero declarations.

'Werkkostenregeling' process during wage processing

In a diagram, this looks as follows:

In this process, you send wage declarations in the following period. If you send wage declarations in the same period as the one in which you approve the salary processing, the steps in the process are the same.

Wage declaration

When it checks the wage declaration Profit calculates the ‘Loonheffing’ wage. This is the ‘Loonheffing’ wage from the current work and the ‘Loonheffing’ wage from the earlier work insofar as this portion is less than 10% of the ‘Loonheffing’ wage. This ‘Loonheffing’ wage serves as the basis for calculating the ‘Werkkostenforfait’. Profit calculates the ‘Loonheffing’ wage from the current work using the 100.006.523 'Loon loonheffing uit tegenwoordige arbeid' wage component. This wage component is retrieved by using a wage summary.

Profit calculates the ‘Loonheffing’ wage from the earlier work using the 100.006.524 'Loon loonheffing uit vroegere arbeid' wage component. This wage component is also retrieved by using a wage summary.

The wage components always supply the value for the relevant period. Depending on the selected method, the period (method 3) or the cumulative (methods 1 and 2) value is determined.

Note:

Each wage component has a comment in which the operation of the wage component is explained. Always take a look at this explanation on the Comment tab in the properties of the wage component in the CLA. If you do not have the wage component available, first activate it.

If you are using the ‘Werkkostenregeling’, Profit calculates the 'Eindheffing' for the 'Werkkostenregeling' when it checks the wage declaration. This means that the journal entry associated with this is not contained in the journal file created by the wage calculation. You manually enter the missing journal entry for the 'Werkkostenregeling' to the balance sheet account. The contra entry of the balance sheet account at the bank occurs when the bank statements are read imported.

Note:

For the calculation of the total taxable wage over the previous year, you must have sent all wage declarations for the previous year in Profit.

Applying the 'Werkkostenregeling' with retroactive effect

You can apply the 'Werkkostenregeling' during the wage year with retroactive effect in Profit. You specify the method with retroactive effect at the employer level. This means that you can enter the amount in labour costs in the main period of the salary processing plan.

Terminate the 'Werkkostenregeling' for an employer who ceases to exist

If a ‘Loonheffingen’ number expires, you no longer submit wage declarations for future periods. These would result in rejects because the ‘Loonheffingen’ number no longer exists. In this case you delete the salary processing plans for the future periods. As a result Profit also deletes the associated declaration lines.

For the 'Werkkostenregeling' select the Recalculate 'eindheffing werkkostenregeling' check box by selecting HR / Payroll / Salary processing cockpit and then the Sal. proc. plan action. Select this check box after you have deleted the future periods from the salary processing. The Recalculate 'eindheffing werkkostenregeling' check box ensures that Profit in the wage declaration of the relevant period (when method 1 or 2 of the 'Werkkostenregeling' is applied) prepares a final settlement on the basis of the calculation basis for the year. A final settlement is not prepared when method 3 is applied.

Example:

An employer ceases to exist on 31-08-2011.

You delete the salary processing plans for periods 9 to 12. This action also causes the declaration lines for these periods to be deleted.

Select the Recalculate 'eindheffing werkkostenregeling' check box in the properties of the salary processing for period 8.

Preparation

Procedure

  • Post to the ‘Werkkostenregeling’ wage components

    If you apply the ‘Werkkostenregeling’, you enter data for the wage components of the 'Werkkostenregeling’.

  • Specify the labour costs amount

    If you apply the 'Werkkostenregeling’, you must specify the amount of the reimbursements and/or benefits that you are claiming under the 'Werkkostenregeling’. When the wage declaration is checked, this amount is verified on the basis of the total taxable wage.

  • ‘Werkkostenregeling’ (‘WKR’) analysis

    Analyses are available for the ‘Werkkostenregeling’ (‘WKR’).

  • Submit a wage declaration

    In the digital declaration, you can double-click on the ‘Wage tax/social insurance premium to be paid heading to check the specification of the 'Werkkostenregeling’.