Employer share of 'ZVW' premium for employees with code E: 'Subject to compulsory insurance'

Note:

The description below applies up to and including 2012.

As of 2013, the payroll configuration is changed due to the introduction of the'Uniformering Loonbegrip'. Please refer to the release notes for the CLA for more information.

Profit no longer calculates the employer share of the 'ZVW' premium for employees with code E: 'Subject to compulsory insurance at reduced rate'

If you apply the lower rate (table code E) for the employee, you are not obliged to give a contribution. By default, no employer share is now calculated in Profit if the reduced rate applies. If you still want this, indicate in one of the wage components for the employer contribution to the reduced rate that you want to reimburse the amounts. The biggest change is that this contribution then becomes part of the wage. In Profit this is already processed automatically in case of wage from a previous employment type. These wage components are included in the Loon ZVW Verlaagd calculation basis.

As from 01-01-2008, in case of wage from a current employment type (included in the 'Loon ZVW Normaal' calculation basis), you activate the following wage component:

  • 100.005.048 'ZVW Werkgeversbijdrage Verlaagd (TD)'

or in case of a conscientious objector:

  • 100.005.049 'ZVW Premieverv. belasting werkgever Verlaagd (TD)'

The tax authority requires you to correct this with retroactive effect as from 01-01-2008. With regard to the 'ZVW' refund it is not necessary to make any corrections for 2006 and 2007.

Note:

This change does not cause an automatic RAE entry.

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.

In addition to the activation of the wage components, it is also necessary to set the 'Werkgeversbijdrage ZVW verlaagd vergoeden' parameter at the CLA or employer level.

The reason that new components are required for this:

The employer has the option to apply the 'ZVW' employer share if the reduced rate applies. Now a tax inspector has decided that if the employer chooses to contribute an employer share, while the reduced rate applies at the same time, it is taxed for all levies.

Next the tax authority has stated that everyone should apply this decision, even with retroactive effect from 01-01-2008.

The tax authority would probably have preferred a correction for 2006 and 2007 as well, but since they had already started to refund the 'ZVW' premium, this is no longer possible.

We understand that you would rather not have any corrections at all, but this approach is, however, correct.

To set the wage component at the CLA level:

  1. Go to: HR / Organisation / CLA.
  2. Open the CLA properties.
  3. Go to the tab: Wage component.
  4. Open the properties of the 'ZVW Werkgeversbijdrage Verlaagd (TD)' wage component.
  5. Go to the tab: Parameter.
  6. Open the properties of parameter 1.
  7. Go to the tab: Parameters with links.
  8. Open the properties of the 'Werkgeversbijdrage ZVW verlaagd vergoeden' parameter.
  9. Go to the tab: Value.
  10. Click on: New.
  11. Enter the new value.

To set the wage component at the employer level:

  1. Go to: HR / Organisation / Employer.
  2. Open the employer’s properties.
  3. Go to the tab: Wage component. 
  4. Click on: New.
  5. Select the 'ZVW Werkgeversbijdrage Verlaagd (TD)' wage component.
  6. Click on: Finish.
  7. Open the properties of the 'Werkgeversbijdrage ZVW verlaagd vergoeden' parameter.
  8. Click on: New.
  9. Enter a new value.