Because human capital is so important during these uncertain times, employees’ well-being should be an employer’s top priority. One thing that can help with this is correctly processing the monthly salary to avoic any surprises when filing the annual personal income tax return. Furthermore, complying with international and local payroll legislation is extremely important for employers to avoid additional levies and penalties. In this context, and given the fast-approaching end of the 2020 calendar year, we advise companies to thoroughly review the 2020 payroll of their cross-border workers.
At Boxx, we can assist, advise and guide you through this process by carrying out a payroll scan. This scan focuses on the following points of attention:
- The review and possible adjustment of split taxation across various countries in line with the actual (business) travel of the employees involved.
- The possible application of the COVID-19 agreements concluded by the countries involved (this is between BE/NL, NL/GER, BE/FR, BE/GER and BE/LUX), on the basis of which the forced home-working days can be taxed in the usual country of work activities based on the application of the approved fiction.
- The correct application of the Dutch 30% facility to all remuneration components.
- The verification of the applicable salary standard for the application of the 30% facility.
- The correct application of the Belgian expat concessions in respect of the travel exclusion and calculation of the expat allowances.
- The correct processing of special remuneration items (such as cash bonuses, share (options) and RSUs) according to the reference period and the corresponding workday allocation.
- The application of local employment conditions (such as holiday pay, 13th– and 14th-month payment and sectoral allowances).
- The alignment of the payroll in different countries.
- The verification of components taxed in the host country (such as pension contributions) that are granted in the home country.
- The correct application of the company’s remuneration policy (such as tax equalisation and tax protection).
- The checking of optimisation possibilities (such as the pro rata application of the 30% facility).
- The identification of tax and social security law points of attention for the coming calendar year 2021 in view of, for example, the change in work pattern.
Contact us if you need more information or support with your 2020 payroll scan at [email protected].