Work Costs Scheme (WKR): Everything for Employers and Employees in Zoetermeer
The work costs scheme (WKR) allows employers in Zoetermeer to provide reimbursements and benefits to staff tax-free within a 'free space'. This portion of the payroll sum enables secondary employment conditions such as commuting expenses to Stadionplein or a Sinterklaas gift, without payroll tax for the employee. For businesses in the region, like those at Zoetermeer Innovation Plaza, the WKR helps you stay competitive. Employers in Zoetermeer can always benefit from targeted exemptions for travel expense reimbursements. Consult Het Juridisch Loket Zoetermeer for personalized advice.
What Does the Work Costs Scheme Mean for Zoetermeer?
Under the WKR, non-exempt reimbursements—such as public transport to The Hague or laptops for home workers in Zoetermeer—are handled fiscally through one simple system. Since 2011, this has replaced the old private use addition rules. Employers may spend a fixed percentage of the taxable payroll sum tax-free. Exceed the free space? Then 80% tax applies to the excess, which may result in assessments upon inspection by the Tax Authorities.
Key point: targeted exemptions, such as home-to-work travel, remain outside the free space and are tax-free by definition. Ideal for commuters in Zoetermeer.
Legal Basis of the WKR
Anchored in the Wage Tax Act 1964, Article 31, the WKR designates a forfaitaire portion of the taxable payroll sum (gross salary plus holiday allowance) as free space. The Tax Authorities publish the percentage annually. For 2024: 1.92% up to €400,000 payroll sum and 1.18% above that. Local employers in Zoetermeer can track this via the Tax Authorities portal and report it in their payroll tax return. Errors may lead to fines or assessments. For disputes, contact the Rechtbank Zoetermeer.
| Year | Free Space (% of Payroll Sum) | Notes |
|---|---|---|
| 2019 | 1.80% | Stable percentage |
| 2020-2023 | 1.70% | Reduction due to COVID |
| 2024 | 1.92% (up to €400k), 1.18% above | Increase for vitality |
Calculate the Free Space for Your Zoetermeer Business
Free space = forfait × payroll sum. Example: €1,000,000 payroll sum in 2024 yields (1.92% × €400,000) + (1.18% × €600,000) = €14,760. Excess? 80% taxed. Carry forward up to 80% to the next year. Use Tax Authorities tools or seek assistance from the Municipality of Zoetermeer for local business support.
Targeted Exemptions Outside the Free Space
Targeted exemptions are always tax-free:
- Home-to-work travel costs (up to €0.23/km, 2024) – perfect for Zoetermeer commuters.
- Business phone/internet.
- Work-related training costs.
- Relocation costs in the region.
WKR Examples in Zoetermeer Practice
Example 1: Local Office. €200 public transport reimbursement (exempt), €50 gift voucher party, and €300 laptop (free space). With €500,000 payroll sum (€9,600 space): well within budget.
Example 2: SME Overspend. €200,000 payroll sum (€3,840 space), €5,000 on events: €1,160 excess × 80% = €928 tax.
Example 3: Vitality. Extra budget for a gym in Zoetermeer, popular with young staff.
Rights and Obligations under the WKR
Employers in Zoetermeer:
- Obligation: Maintain administration and file payroll tax returns.
- Right: Flexible benefits.
Employees:
- Right: Enjoy tax-free benefits.
- Obligation: Report private use.
FAQ: WKR in Zoetermeer
What if you exceed the free space?
80% tax on the excess. Plan ahead or carry forward.
Do travel costs fall under the WKR?
No, home-to-work travel is exempt. More info.
WKR with collective agreement in Zoetermeer?
Yes, if tax-compliant. Check with Het Juridisch Loket Zoetermeer.
WKR for local self-employed?
No, only for employment relationships. Self-employed: VAT rules; agency workers via the client.
Tips for Optimal WKR Use in Zoetermeer
- Plan early: Calculate space and discuss with your team.
- Prioritize targeted: Focus on popular perks like local sports.
- Seek advice: From Het Juridisch Loket Zoetermeer or Municipality Zoetermeer.
- Monitor: Use portals to avoid excesses.