Following the breakfast sessions on the Work-Related Expenses Scheme (WKR) organised by VWGNijhof and the resulting measures in the areas of payroll and financial administration, VWGNijhof has developed the WKR Check. This tool has been developed to enable employers to prepare properly for the WKR, which will become mandatory from 1 January 2015.
WKR Check procedure:
An inventory list is used to identify all relevant allowances and benefits in kind provided to staff. Following the review, the employer receives a concise report explaining how the relevant allowances and benefits in kind should be classified under the WKR. It also specifies whether the allowances and benefits in kind fall within or outside the discretionary allowance (of 1.2% of the taxable salary). Any amount exceeding the discretionary allowance is subject to 80% final levy.
In this way, employers will be able to assess the financial implications and potential cost savings relating to specific pay components even before 1 January 2015. Employers can thus take timely action to minimise the financial implications or to realise cost savings with the introduction of the WKR.
Cost of the WKR Check:
VWGNijhof offers the WKR Check for:
- a fee of €250, excluding VAT, for companies with up to 20 employees;
- a fee of €400, excluding VAT, for companies with more than 20 employees.
Adjusting the financial records:
In addition, we advise all employers to adapt their financial records (or have them adapted) so that, during the financial year, they can gain an insight into the various cost categories under the work-related expenses scheme. This enables the employer to monitor the potential financial implications of the work-related expenses scheme on a regular basis and make adjustments where necessary.
VWGNijhof has drawn up an overview of the necessary changes that need to be made to the financial accounts.
If an employer fails to take the necessary measures in good time – including making adjustments to its financial records – it may face financial consequences when finalising the 2015 annual accounts. Additional work will then need to be carried out to identify these financial consequences. There is also a risk that an employer may subsequently face additional payroll tax assessments. From this perspective, VWGNijhof advises that prevention is better than cure, and we urge employers to start implementing the WKR in good time.
Interested?
If you are interested or would like to receive further information about the WKR check and/or adjusting your financial records, please send an email to Miranda van Gaal – van Leent: mvangaal@vwg.nl