Employee reaches the age of 'AOW' entitlement (65)

In the period that an employee reaches the pensionable age, additional adjustments are required to ensure a correct wage calculation. This depends on the following situations:

• The employee stops working
• The employee continues to work

Employee stops working

If the employee retires you need to change some of the data in Profit.

Note:

As from April 2012, the moment of entry into the 'AOW' (retirement) has been moved The 'AOW' (retirement) age in 2015 is 3 months after the 65th birthday. This age will gradually increase later on.

Most pension funds still choose for the pension to become effective on the first day of the period. There are no changes concerning the 'AOW' contributions and national insurance contributions. As from the first day of the period in which the employee reaches the age that gives 'AOW' entitlement, no 'AOW' or national insurance contributions are payable.

Employee stops working:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Agency.
4. Open the tax authority agency.
5. Click on: New.

   Add a new agency line for the tax authority with the following data:

   1. Enter the first day of the period in which the employee reaches the age of 'AOW' entitlement in Start date.
   2. Select Do not apply for 'Loonheffingskorting' (this is usually applied via the 'AOW' benefit which is received from the day the employee is entitled to receive 'AOW').
   3. Deselect the 'ZW', 'WW', 'WAO', and 'UFO' check boxes.

      The employee remains insured until the age of 'AOW' entitlement. By deselecting these check boxes, Profit ensures that the premiums are no longer withheld in this period.

      If you have selected at least one of the check boxes concerning the compulsory insurance, the sector risk group cannot equal 0000. If none of the check boxes has been selected, set Deviating 'Sector risicogroep' to 0000.

6. Click on: Finish.
7. Go to: HR / Employee / Employment ended.
8. Report the employee's end of employment using the End of employment wizard. The end of employment date is the day before the employee reaches the age of 'AOW' entitlement.

Employee continues to work after reaching the age of 'AOW' entitlement

If the employee continues to work after reaching the age of 'AOW' entitlement, you do the following:

• Report the employee's end of employment.
• Add a new person and employee.
• Report the start of employment of the new employee.

Employee continues to work after reaching the age of 'AOW' entitlement:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Agency.
4. Open the tax authority agency.
5. Click on: New.

   Add a new agency line for the tax authority with the following data:

   1. Enter the first day of the period in which the employee reaches the age of 'AOW' entitlement in Start date.
   2. Select Do not apply for 'Loonheffingskorting' (this is usually applied via the 'AOW' benefit which is received from the day the employee is entitled to receive 'AOW').
   3. Deselect the 'ZW', 'WW', 'WAO', and 'UFO' check boxes.

      The employee remains insured until the age of 'AOW' entitlement. By deselecting these check boxes, Profit ensures that the premiums are no longer withheld in this period.

      If you have selected at least one of the check boxes concerning the compulsory insurance, the sector risk group cannot equal 0000. If none of the check boxes has been selected, set Deviating 'Sector risicogroep' to 0000.

6. Click on: Finish.
7. Go to: HR / Employee / Employment ended.
8. Report the employee's end of employment using the End of employment wizard. The end of employment date is the day before the employee reaches the age of 'AOW' entitlement.
9. Go to:HR / Employee / Employee.
10. Click on: New.

    Add a new person and employee.

    You add a new employee because you need to configure a new agency line on the date the employee is entitled to 'AOW'. When calculating the wage for a period, Profit takes account of the last agency line. If you do not add a new employee, Profit would also use the data from the new agency line for the part of the period when the employee has not reached the age of 'AOW' entitlement. This leads to an incorrect calculation.

    If an employee reaches the age of 'AOW' entitlement on the first day of the period, you can use the same employee.

11. Report this employee as employed again. The start of employment date is the day on which the employee reaches the age of 'AOW' entitlement.

    In the tax authority agency change the following data:

    1. Deselect the 'ZW', 'WW', 'WAO'and 'Pseudo WW' check boxes (the employee is in fact no longer insured).
    2. Enter 0000 for Deviating 'Sector risicogroep'.
12. Add the pension agency, this will depend on the relevant pension agency.

    Some data may still be important for employees who continue working, such as the professional code in the construction industry. Using the documentation of the 'PLO' or 'OLP', among other things, you can check what modifications are necessary for the pension agency.

    Configure the following for the 'APG' agency if the Multiple employments functionality has not been activated. Select the 'OP/NP' and 'AOP' check boxes in the 'APG' agency. Do not select the 'FPU (overgangspremie VPL)' field.

    The configuration of the APG agency is only required if the Multiple employments functionality has been activated and is described separately.

13. Check Income relationship no. in the new contract of the employee.

    The number in the new contract must not match the number in the old contract. If the number matches, you cannot submit the wage declaration. If the number is the same, change the number in the new contract.

    Note:

    If the employee starts employment again in a period after the period of ending the employment, you do not need to add a new employee. You can then report the start of employment for that employee again.

If the employee eventually stops working, you can use it for paying the pension.