'WW' premium / 'WGA' premium refund

Once per year the tax authority refunds the surplus amount of 'WW' and 'WGA (gedifferentieerd)' premiums paid by the employer. The refund regulation only applies to employees with at least two employers, because in that case they could end up paying more in premiums than the maximum amount, because the employers are not aware of each other's payments.

The refund consists of different parts for the 'WW' and 'WGA' premium:

• Employee 'WW' premium
• Employer 'WW' premium
• 'WGA Gedifferentieerd'
• 'Heffingsrente'

In case of the 'WW' premium it is clear which part should be refunded to the employee. In the case of 'WGA gedifferentieerd' it depends on whether or not the employer has decided to charge part of it to the employee. As the tax authority does not know if the employer has charged a part to the employee, this will not be mentioned in the tax authority letter. The 'heffingsrente' that the employer receives, does not have to be paid to employees and can be posted to the financial administration.

No 'ZVW' needs to be calculated on the refund for employees who left employment. But wage time frames that were calculated earlier in the year can be used for the recalculation. This is done by using a back pay contract in Profit .

Note:

In this situation you cannot change the 'ZVW' code in the agency properties of the Tax authority at the employee level. You are not allowed to calculate 'ZVW' for employees that are deceased. This is also achieved using a back pay contract.

Note:

In this situation, go to the agency properties of the Tax authority at the employee level and change the 'ZVW' code to Not subject to compulsory insurance as the person is not insured under the 'AWBZ'.

How the 'ZVW' refund wage components work

The wage components have already been activated in the CLA. If the employee in question is still employed, you can post directly to the wage components, if not, add a back pay contract.

Wage components

In the Profit CLA and Basic CAO the following wage components are present for this purpose:

• 100.005.042 'Teruggaaf werknemersverzekeringen vorig jaar'

  To this wage component you post the total amount of the refunded employer insurances, as mentioned in the letter that you received about the employee in question. The components that need to be paid to the employee are deducted automatically from this amount, so the balance is the employer share.

• 100.005.040 'Teruggaaf werknemersdeel WW vorig jaar'

  To this wage component you post the amount of the 'WW' premium's employer share that is being refunded. This component is included as a taxed reimbursement in the Gross-Net calculation.

• 100.005.041 'Teruggaaf gedifferentieerde premie WGA vorig jaar'

  To this wage component you post the amount of the 'WW' premium's employee share that is being refunded. You have to calculate what part of this should to be refunded to the employee. This component is included as an untaxed reimbursement in the Gross-Net calculation.

All these wage components will be journalised. This is why you have to link ledger accounts to these components in the journal structure.

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.

Sample calculations

Sample calculation of 'WW' and 'WGA' refund:

Sample calculation of the 'WW' and 'WGA' refund in case of a back pay contract: