Optimal use of WKR Laws and regulations

29 aug, 2016

For many employers, 2015 was the first year in which they had to deal with the WKR (Werkkostenregeling) or Work Cost Scheme (WCS). The fiscal consequences were mapped for both employer and employee and in addition, you were required to have a complete financial account ready for the transition. Have you ever wondered whether there is a smarter way to apply the  WCS within your organisation? Or how to use the free space to your best advantage without raising expenses? Arvode can provide you with advice, with your organisation’s best interests at heart.

Since 1 January 2015, the WKR is mandatory for every employer in the Netherlands. This regulation limits the amount you can spend on untaxed compensations and allowances for your employees (the so-called ‘free space’) to a maximum of 1.2% of your total fiscal income. Any amount exceeding the free space is subject to payroll tax in the form of a final levy of 80%. In addition, you may continue to issue compensations and allowances free of tax on for specified exemptions.

Maybe you have asked yourself the question whether there is a smarter way of applying the WCS or whether you could make better use of the free space. Arvode’s specialists can provide you with tailored advice.

Your costs and WCS space will be inventoried using Arvode’s special WCS-tool. Based on the outcome of this inventory, we will analyse your current situation with regard to the WCS. This analysis will be incorporated in the advisory report, together with practical advice on the possible amendments to your labour conditions or the possible action you could take to apply the WKR to your best advantage.

Juliëtte van der Smeede

Account manager


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