Premium reduction for older employees (from 2013)

As from 2010 you are entitled to a premium reduction for elderly employees in the following situations:

  • You employ a benefits recipient who is aged 50 or older.
  • You employ someone who is aged 62 or older.

The reduction is not deducted from the wage component used to calculate the 'WW' or 'WIA' employer share, because on the wage declaration this should also be kept separate.

If the employee works less than 36 hours per week for you, Profit reduces the amount of the premium reduction proportionally. Profit applies this to employees with whom a fixed number of hours have been agreed upon, by dividing the agreed upon working hours by 36. For employees without an agreed number of working hours, Profit uses the hours paid out in the declaration time frame divided by the norm hours per four weeks (144) or per month (156).

Check the premium reduction based on the 'WW/Awf/Ufo' premiums and the 'WAO/WIA' premiums. This means that one of the two halves of the premium reduction cannot be higher that the entire premium that you pay for the 'WW/Awf' en 'Ufo'. And the other half of the premium reduction cannot be higher than the total premiums for the 'WAO/WIA'.

Wage components

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

  • 100.005.113 'Premiekorting nieuwe arbeidsverhouding oudere medewerkers'
  • 100.005.107 'Premiekorting nieuwe arbeidsverhouding oudere medewerkers (corr vorige periode)'

    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.

Tax authority agency at the employee level

You determine the correct premium reduction code per employee. You can choose from:

  • 6 Employee aged 50 or older who received some kind of benefit before he was employed
  • 7 Employee aged 62, 63 or 64 to whom code 6 does not apply
  • 8 Employee to whom both codes 5 and 6 apply
  • 9 Employee to whom both codes 5 and 7 apply

To set the premium reduction code per employee:

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

    The premium reduction applies from the first day of the period of the employee's birthday. Add a new line if you do not have a line for this period yet.

  6. Go to the tab: Special situations.
  7. Select the premium reduction.
  8. Click on: OK.

If the employee receives a salary that is based on a piece wage, go to the properties of the employee and on the Wage component tab set the 'Premiekorting nieuwe arbeidsverhouding oudere medewerkers' wage component to Yes for the Stukloon parameter. If this is not the case, you do not have to specify any other settings.

Note:

Based on the relevant legislation and regulations you have to determine if the employee is entitled to this reduction.

Note:

The premium reduction for an employee can be higher than the premiums that have been paid for that employee. The premium reduction is settled at the collective level and is therefore deducted from the total in premiums owed. The total amount of the premiums owed (at a collective level) cannot be less than zero. Any surplus of premium reduction can be settled in a future time frame. If there is still an amount to be settled when it is time for the December declaration (or the thirteenth 4-week declaration), this can be settled with earlier time frames. Settlements across years are not allowed. Using the wage component with root number 100.005.107 'Premiekorting nieuwe arbeidsverhouding oudere medewerkers (corr vorige periode)', a correction can be entered in the following period, should the collective premium be negative in this period in the wage declaration.

Note:

Using the VCR methodology may give rise to differences in periods.