Working expenses scheme: settlement for 2024 and looking ahead to 2025

When the free space within the work costs scheme (WKR) is used up in 2024 exceeded, the employer is obliged to pay payroll taxes on the amount exceeded amount to be paid. This must be done at the latest in the wage tax return for February 2025, so before March 31, 2025.

Free space

In 2024, the free space was 1.92% on the first €400,000 of the taxable payroll and 1.18% on the excess. If the reimbursements, benefits and If the available space exceeds the available space, the employer must final levy of 80% to be paid on the surplus. Required actions for 2024

It is important to carefully assess the WKR for 2024. Follow the below steps: 1. Checking and booking costs:

Check that all costs are correctly qualified and booked. This means:

• Are all costs that do not fall under a targeted exemption or nil valuation?

and for which payroll tax may not be charged to the employee

charged, charged to the free space booked?

• Are costs that qualify as targeted exemption or nil valuation not?

unnecessarily booked in the free space?

• Has VAT been correctly included in all costs?
  

2. Explicit indication:

Make sure that the costs that fall under the free space are explicitly stated as such

designated. The same applies to targeted exemptions. (See also our news item

below.)

3. Make corrections:

Where possible, make adjustments to the qualification of costs.

4. Calculation of free space:

Determine the total free space for 2024, based on column 14 of the final payroll statement

of that year.

5. Calculation of excess:

Calculate whether the free space has been exceeded and determine the amount of the

exceedance.

6. Declaration of payroll taxes:

Include any excess in the wage tax return for January 2025 or

February 2025. Proactive in 2025 A proactive approach for 2025 can reduce employer costs and avoid surprises. To do this, do the following: 1. Estimate free space 2025:

For 2025, the tax-free allowance is 2% on the first €400,000 of the tax

payroll and 1.18% on the excess.

2. Planning and qualifying:

Make an inventory of the planned costs and activities for 2025 and

qualify this according to the WKR.

3. Optimize and monitor:

• Research optimization options in advance.

• Manage costs correctly monthly and monitor quarterly

the free space.

• If necessary, timely adjustments can be made to avoid excesses and additional costs

to avoid employer charges. WKR tool as an aid

A WKR tool can be of great value in qualifying costs and monitoring the free space. With such a tool you can easily manage the WKR and limit or control the risk of exceeding. Please feel free to contact us for more information about a suitable WKR tool.