Your personnel and payroll administration plays an increasingly important role in today’s business. By properly setting up the administration you can contain financial risks. That contributes to the continuity and growth of your company. It is also important to remain constantly informed of developments in the field of payroll taxes.
Employee participations reduce the possibility of talents leaving and binds them more to the company. By using the legal and fiscal opportunities, it is more attractive for you as an employer to tie talent to your company. Especially for companies in the High Tech Industry employee participations can be the key to a successful business.
If you cannot find the right employee in the Netherlands but you can abroad, the 30% ruling can persuade the employee to come work for you. The essence of this ruling is that the employee gets paid 30% of his salary without taxation. This 30% is a contribution towards the additional costs made for travel and accommodation. The 30% is ,however, connected to certain conditions.
In cross-border enterprises and work, it is important to know in which country you or your employee is socially insured. Not only to determine in which country you are entitled to social services but also to determine what costs come with it. After all, every country funds other social services.
An income tax quick scan allows you to determine whether you ,as an entrepreneur, are exposed to risks relating to your obligation in terms of the income tax and social insurance contributions. When you do not have your salary administration in order, it can be a reason for the tax authorities to impose additional tax assessments that are often associated with fines of at least 25%. Because tax examinations often contain several years, this may lead to unpleasant financial surprises.
You have a great responsibility in managing and anticipating fiscal risks. Fiscal risks can be limited by using a Tax Control Framework (TCF). TCF is a fiscal risk management and control system that looks among other at the policy, internal procedures and processes and the division of fiscal responsibilities. Not only errors but also opportunities will come on screen earlier. With a TCF you are in control.
The employment costs puts the regime of free reimbursements and benefits that can be given to employees upside down. The employment cost regulation is mandatory since January 1, 2015. With proper implementation of the regulation, you can reward your best employees.