Apply daily table or period table
Based on the tax authority's regulations, Profit automatically determines if the daily table or the period table should be applied. For most employees, apply the period table. However, for some employees, you have to apply the daily table. This topic shows the application criteria for the daily table and the period table. Following that, the procedure in Profit is explained.
This explanation refers to both the daily and the period table. The period table refers to the time frame (weekly, four-weekly, or monthly table) that is used for wage processing.
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Tax authority regulations regarding the daily table
To correctly determine whether the daily table should be applied, a number of criteria must be checked. These are the following:
- Always the period table for part-time employees
- No wage time frame
- Incomplete wage time frame (because of unpaid leave or employment start or end) In the case of an incomplete wage time frame, it is also important to check if the employee has a company car.
Always the period table for part-time employees
For part-time employees, a period table must always be applied. This also applies to part-time employees that enter or leave employment during a wage time frame. The below criteria are not relevant for part-time employees.
As from 1 January 2007, an exception to the use of the daily table applies for part-time employees. In the case of a part-time employee who takes unpaid leave, does not have a company car and is paid per period, the period table is applied instead of the daily table. In the case of a full-time employee, the daily table is applied in this situation.
No time frame wage and therefore no wage time frame
If an employee does not have any wages at the normal rate in a wage time frame, the daily or period table cannot be applied. An extra time frame is not created for the employee insurances, meaning no extra franchise or maximum premium base is accrued either. The 'Loonheffing' for wage at a special rate is determined on the basis of the ‘BT’ percentage. However, the application of VCR can lead to a withholding of employee insurances, if the maximum has not yet been withheld in the preceding time frames.
Incomplete wage time frame
In the following situations, an incomplete wage time frame occurs:
- The employee enters or leaves employment during the wage time frame.
- The employee takes unpaid leave during a part of the wage time frame. If the unpaid leave is taken for the entire wage time frame, there is no time frame wage and the daily or period table is therefore not applied.
- The employee uses ‘Vakantiebonnen'.
In the case of an incomplete wage time frame, the daily table must be applied for full-time employees. For part-time employees, the period table is always applied.
Addition for private use of a lease car
An exception applies to a company car. Based on the above criteria, an incomplete wage time frame could occur, but because of the continuous use of the company car a full time frame is used. That is why the period table must be applied.
Note:
If a full-time employee is entitled to ‘Vakantiebonnen’, this rule does not apply. In that case you must still apply the daily table, because an employee entitled to ‘Vakantiebonnen’ has a custom VCR franchise, VCR maximum and ‘Loonheffingen’ table. This change has been implemented in Profit in December 2007, following a decision by the inspector.
Note:
When applying the daily table, the situation on the end date of the period is taken into consideration. The following situations can, for example, occur:
- The employee takes 5 days of unpaid leave in period 1: the daily table is applied.
- In period 1, the employee also has a company car (continuously): the period table is applied.
- The employee only gets the car assigned on the 15th (thus not during the unpaid leave): Profit applies the period table even though it is allowed to apply the daily table in this case. If necessary, you can force the application of the daily table.
Table type determination in Profit
First Profit determines if the employee works full-time or part-time. A part-timer is an employee with a part-time percentage that is smaller than 100%. For this Profit always uses the part-time percentage from the salary line in the employee's properties, whether or not the Apply timetable in Payroll check box has been selected for the employee. It is therefore necessary that the timetables of the employees are always completed correctly.
Apply the timetable in Payroll
The Apply timetable in Payroll field is located in the properties of the employee's salary line. You can use this field to indicate that employees are not casual staff but have a permanent contract, even though they have a Hourly wage or Scale hourly wage salary type. CLA wage components use this setting to determine if the number of days and hours should be retrieved from the timetable or from the wage entries.
Deviate per employee from the default regulation
In Profit you can deviate from the automatic tabletype determination. To do this, go to tax authority agency settings in the employee's properties and change the value in the Application of daily table field. You have the following options:
- Default regulation
Profit applies the default regulations based on the following diagram.
- Apply forced daily table
Profit always applies the daily table.
- Apply forced period table
Profit always applies the period table.
In the below diagram you see how Profit determines by default whether to apply the daily table or the period table:
Forced application of the daily table or period table
AFAS has consulted with the tax authority on the application of the daily table. This has resulted in to a number of clear agreements that have been implemented in Profit:
- Default regulations
Profit applies the default regulations. As default, Profit uses the period table that has been set on the Salary tab in the properties of the employee.
The following applies with regard to using the daily table:
- Profit applies the daily table according to the 2006 implementation up to and including the last day of the last period of the period table applicable for 2006.
- As from 2007, Profit applies the renewed tax authority regulations with regard to the daily table. Select one of the below settings only if you want to deviate from this.
- Forced application of the daily table
With this option, Profit always applies the daily table during the term of the agency line, regardless of the regulations. Of course, this is done at the sole responsibility of the customer.
- Forced application of the period table
With this option, Profit always applies the period table during the term of the agency line, regardless of the regulations. Of course, this is done at the sole responsibility of the customer.
Forced application of the daily table
The below description uses the following concepts:
- Timetable days
The number of days according to the timetable, not taking into account employment start and end. If the timetable is not included in Profit Payroll, this number is 0.
- Contract days
The number of days according to the timetable, taking into account employment start and end. If the timetable is not included in Profit Payroll, this number is 0. As from 2007, in the following situations, the default regulations are deviated from and the daily table is used:
- Forced application of the daily table is used for the employee.
- It concerns the first period in which the employee entered employment OR the last period in which the employee was employed.
AND the timetable is applied in Profit Payroll;
AND the number of timetable days is greater than the number of contract days.
Explanation: the daily table is always applied for an employee who enters or leaves employment for whom the number of timetable days is greater than the number of contract days (regardless of the actual number of days worked).
- It concerns the first period in which the employee started employment OR the last period in which the employee was employed;
AND the timetable is not applied in Profit Payroll;
AND the number of calendar days of the contract is not equal to the number of calendar days of the period.
Explanation: The daily table is applied to anyone without a timetable in Profit Payroll (timetable days and contract days = 0) AND who enters employment at a later date than the start date of the period OR to anyone who leaves employment before the end date of the period.
- In the period unpaid leave has been posted AND the employee does not have a company car.
As from 2007, in order to be able to determine if the daily table should be applied in the above manner, the 100.006.520 'Toepassing dagtabel' wage component has been made available in the 10.048 'Toepassen dagtabel' calculation rule.