23 Nov Salary Services year-end actions
Salary Services year-end actions
23 November 2022
The end of 2022 is approaching. Therefore, we would like to inform you about how we plan to perform the last payrolls for 2022 in the best possible way and how we start the payroll 2023 for you. We also briefly inform you about the most important changes in the payroll area as of January 2023.
Content and actions we request from you
In this newsletter, we inform you about:
- What information we need from you for the December 2022 payroll, for completion of the payroll 2022 and for the start-up of the payroll 2023; and what deadlines apply.
- What information we need from you to process the final levy on the 2022 working costs scheme.
- Changes as of January 2023 in the salary/wage tax area (travel allowance, home working allowance, work-related costs scheme, salary for diretors-shareholders) and other points of interest (sickness law and wga burden control, reporting obligation, wage cost benefit and low income benefit, minimum wage, changes 30% ruling, cross-border workers, foreign director and supervisory director remuneration, e-recognition, additional modules Loket).
What would we like to know from you for the December 2022 payroll and completion 2022?
We would like to hear from you whether:
- you want to pay a so-called untaxed WKR bonus in December 2022 for one or more employees. See below under working costs scheme for more information on the possibilities.
- are there any changes to be made regarding the fiscal addition/income inclusion for company cars and/or bicycles?
- all hours/days over 2022 have been paid?
- all expense claims over 2022 have been paid?
- all pension contributions have been calculated, deducted and paid?
- any fines still to be deducted from your employees’ net wages?
- advance payments paid in 2022 still need to be processed in payroll?
- any adjustments needed to the R&D remittance scheme, if applicable?
- anything yet to be adjusted to your salary as director-shareholder for 2022?
If one or more of the above applies and needs to be processed in the December 2022 payroll, we would like to hear from you as soon as possible, but no later than Tuesday 6 December 2022, so that your December 2022 payroll is finalised before Christmas. In the unlikely event that this is not possible for you, we kindly ask you to get in touch with your contact person in our payroll team.
Please email your response to your contact from our payroll team with a c.c. to firstname.lastname@example.org.
Close of payroll 2022 – deadline for mutations 13e month 2022
We will close the payroll for 2022 in the first 2 weeks of January 2023. This implies that you can submit mutations for a 13e run for 2022 until 9 January 2023 at the latest. In the unlikely event that this is not possible for you by then, we kindly ask you to get in touch with your contact person from our payroll team.
Annual statements 2022 will be ready for your employees by the end of January 2023, they will be notified.
Settlement work-related costs scheme 2022
If you have any free space left over for 2022, it could be used to pay a tax-free bonus/end-of-year bonus to one or more of your employees. In short, the tax authorities agree to pay out up to €2,400 on an annual basis in tax-free allowances and benefits in kind to employees. Do bear in mind that, for example, Sinterklaas activities, Christmas parties, etc. in November and December must also be charged to the free space.
If there is an excess of the free space for 2022, this should be included in the February 2023 wage tax return at the latest. In that case, the employer will owe 80% final tax on the excess. When submitting the mutations for February 2023, please let us know whether there has been an excess of the free space 2022 and if so, how much, so that we can include this in the payroll tax return for February 2023.
Within the work-related costs scheme, the so-called group scheme can be applied. In that case, the free spaces of the various group companies are added together, provided certain conditions are met.
We would be happy to discuss the possibilities of using the free space further with you. Even if you do not yet have a good insight into the free space and its development during the year, we can help you gain insight into this from 2023 and optimise it where possible. Please feel free to get in touch with your contact from our payroll team.
Starting up payroll 2023
For the start of the 2023 payroll processing, we depend on the timely updating of our payroll software by our supplier on the one hand and on you on the other hand. Therefore, we kindly ask you to submit your mutations for the January 2023 payroll processing on time as planned or earlier if possible. If there are substantial changes, we would like to be informed earlier anyway. See also the information below regarding the 2023 changes.
To set up the year 2023 in payroll, we need to perform additional operations. The lead time for the salary processing in January 2023 may therefore be slightly longer than normal.
We would like to receive the following information/documents from you by 31 December 2022:
- decision differential premium Werkhervattingskas 2023 (this will be sent to employers by the Tax Administration around 28 November 2022).
- the 2023 payroll tax return letter (has already been sent out by the Inland Revenue).
- if applicable: change of WGA and/or ZW self-insurance, please provide a copy of the decision of the Tax Office.
- information on new pension contributions and any other insurance from January 2023.
- UWV decisions on, for example, paid parental leave, maternity leave, additional birth leave and sickness benefits to the extent not already in our possession.
Please email the above documents to your contact from our payroll team with a cc to email@example.com .
The untaxed travel allowance for commuting and business trips will be €0.21 per kilometer from 1 January 2023.
Whether you are obliged to pay out this €0.21 depends on its wording in your terms of employment, collective labour agreement and/or other agreements with your employees.
If you want to increase the travel allowance to your employees to €0.21 from 1 January 2023, please let us know in time.
Please note that we do not automatically adjust the allowance unless it is mentioned in the collective labour agreement applicable.
Home working allowance
From 1 January 2023, the untaxed home working allowance will be €2.15 per day of (partial) home working (is €2 in 2022). Again, it is important to check the terms of employment, collective labour agreement and/or other agreements with employees.
Please note that we do not automatically adjust the allowance unless it is mentioned in the collective labour agreement.
Concurrence of commuting allowance and home working allowance
Please note that for a day on which both home and business work is carried out, either the home office allowance or the commuting allowance can be paid. Both on one day is not possible!
Work-related costs scheme
In 2023, the free allowance under the work-related costs scheme will be 3% over the first €400,000 of taxable wage and 1.18% over the excess of the taxable wage.
Salary for director-shareholder
The regulations around the legally obliged customary pay of a DGA (director-major shareholder with at least 5% shareholding) will change from 2023. The so-called 25% efficiency margin will disappear. Until 2022, the salary of a DGA was still allowed to be at least 75% of the salary of someone (employee, not shareholder) in the most comparable position. From 2023, the salary of the DGA must fully correspond to the salary from the most comparable position.
This implies that the customary wage must be the higher of:
- 100% of the salary of the most comparable position (i.e. of an employee with no equity interest; a so-called external mate);
- the salary of the highest-earning employee within the organisation/group;
- The statutory flat rate for the customary wage, in 2023 €48,000.
The exception for innovative start-ups regarding the customary wage will expire in 2023.
Audit of sickness law and WGA charges
Around 28 November 2022, the tax authorities will send out the Whk (Work resumption fund) contribution decisions. The contribution consists of a Sickness Act part and a WGA part. For employers with a wage bill of at least € 1,500,000, it makes sense to have this decision checked. If you are interested in this, we will be happy to inform you in more detail. Please note: should the contribution decision be incorrect, an objection must be made within 6 weeks of the date of the decision, i.e. normally before 8 January 2023!
An information reporting obligation exists for payments made in 2022 to third parties. You must submit this information digitally to the Tax Office by 31 January 2023 at the latest. For more information on this, please contact your contact from our payroll team.
Wage cost advantage (LKV), Low Income Benefit (LIV)
For employees who are older, have a work restriction and/or have a low income, wage subsidies for the employer exist under certain conditions. If you want to know more about this, feel free to get in touch with your contact from our payroll team.
Minimum wages by January 2023
From January 2023, minimum wages will rise by around 10.15%. Below are the new minimum wages with effect from 1 January 2023:
Monthly, weekly, daily wages
|21 years and over||100%||€ 1.934,40||€ 446,40||€ 89,28|
|20 years||80%||€ 1.547,50||€ 357,10||€ 71,42|
|19 years||60%||€ 1.160,65||€ 267,85||€ 53,57|
|18 years||50%||€ 967,20||€ 223,20||€ 44,64|
|17 years||39,50%||€ 764,10||€ 176,35||€ 35,27|
|16 years||34,50%||€ 667,35||€ 154,00||€ 30,80|
|15 years||30%||€ 580,30||€ 133,90||€ 26,78|
|Age||36 hours p/w||38 hours p/w||40 hours p/w|
|21 years and over||€ 12,40||€ 11,75||€ 11,16|
|20 years||€ 9,92||€ 9,40||€ 8,93|
|19 years||€ 7,45||€ 7,05||€ 6,70|
|18 years||€ 6,20||€ 5,88||€ 5,58|
|17 years||€ 4,90||€ 4,65||€ 4,41|
|16 years||€ 4,28||€ 4,06||€ 3,85|
|15 years||€ 3,72||€ 3,53||€ 3,35|
Changes to 30% reimbursement ruling
From January 2023, a number of changes will be made to the 30% reimbursement ruling. There will be a ceiling for the salary on which the 30% reimbursement may be calculated and an explicit choice must be made to apply the flat-rate of 30% or to reimburse the actual extraterritorial costs. For employees already using the 30% reimbursement rule in December 2022, transitional rules will apply, meaning that capping the 30% reimbursement for them will not take effect until 1 January 2026. If you would like to know more about this, please contact Joanknecht’s payroll taxes/global mobility team (possibly via your contact from our payroll team).
Border workers with Belgium, Germany or other countries
For cross-border workers, (substantial) working from home affects their fiscal position (paying tax on salary in both the country of work and residence) and can also affect their social security position. In the Corona era, several measures were taken for this purpose at EU level and bilaterally between the Netherlands and Belgium/Germany. From 2023, many of these measures will no longer apply. It is therefore recommended to investigate this further. Our payroll taxes/global mobility team will be happy to assist you further in this regard (possibly through your contact from our payroll team).
Foreign directors’ and supervisory directors’ remuneration
The Dutch tax treatment of foreign executive and supervisory board remuneration will change from January 2023 and will result in a higher overall tax burden in many situations. Our payroll tax/global mobility team will be happy to review the consequences with you further and whether there are opportunities for tax optimisation.
More matters that need to be arranged through the UWV and occupational pension funds require e-recognition. For example applications for parental leave and maternity leave and filing pension declarations. If Joanknecht arranges such matters for you, we need a so-called chain authorisation for e-recognition. This chain authorisation is concluded between the employer and Joanknecht Salary Services. This allows us to (continue to) perform the work for you. If you would like to conclude a chain authorisation with us so that we can continue to perform the work for you, please contact your contact person in our payroll team. We will then inform you about the procedure (we can fulfil all the administrative formalities for applying for chain authorisation for you) and the costs.
Additional modules Ticket counter
Our payroll software Loket has various additional modules that may be of interest to you, such as registrations for leave and absence, a declaration module and a digital personnel file. We would be happy to inform you further about the possibilities and advantages, including a demo.
During the period Tuesday 27 December 2022 to Monday 2 January 2023, our payroll team will have limited accessibility. A response to your e-mails may therefore be a little later than you are used to. For urgent matters during this period, we are of course available.
Of course, we thank you for our cooperation in 2022 and look forward to our continued collaboration in 2023!
Joanknecht Salary Services B.V.
T: +31 (0)40 844 70 00
Rianka Snoeijen | firstname.lastname@example.org | +31 (0)40 240 94 47
Astrid Moors-Francken | email@example.com | +31 (0)40 240 95 64
Suzanne van Eijk | firstname.lastname@example.org | +31 (0)40 240 95 42
Jan Willem Poortvliet | email@example.com | +31 (0)40 240 94 56
Vince Dekkers | firstname.lastname@example.org | +31 (0)40 240 95 74