Entering Employee Tax Information

This topic discusses how to enter wage tax data.

Page Name

Definition Name

Usage

Tax Data

EMPL_TAX_DATA_NL

Enter data that determine an employee's wage tax. What you enter here affects the gross/net calculations that your payroll system makes.

Use the Tax Data page (EMPL_TAX_DATA_NL) to enter data that determine an employee's wage tax.

What you enter here affects the gross/net calculations that your payroll system makes.

Navigation:

Workforce Administration > Benefit Information NLD > Maintain General Information > Maintain Tax Data

This example illustrates the fields and controls on the Tax Data page. You can find definitions for the fields and controls later on this page.

 Tax Data page

Field or Control

Description

Tax Credits

Select if the employee is claiming a tax credit (heffingskorting), which reduces the amount of tax that is paid.

In the new tax system, employers deal only with these tax credits. The general tax credit (algemene heffingskorting), the labor credit (arbeidskorting), and, if applicable, two old-age tax credits (ouderenkorting and aanvullende ouderenkorting).

Exception tax

Select any exceptions to the wage tax.

30% Ruling (30 percent ruling)

Select if the 30 percent ruling applies to the employee, whereby 30 percent of the income is tax-free.

The 30 percent ruling applies to Dutch employees on international assignments and non-Dutch employees who are working in the Netherlands on an international assignment.

Tax Table Type

Select the tax table that is used to determine the level of the employee's wage tax: Green Tax Table, No Tax, or White Tax Table.

Travel Data

Select the value that describes the employee's travel conditions that impact taxes:

  • Carpooling: Select if the employee uses a car pool.

  • Company Car: Select if the employee has a company car.

  • Employer Transport: Select if the employer takes care of commuting for the employee. The employee is not entitled to a travel allowance.

  • N/A: Select if travel allowance does not apply to the employee.

No Tax on Car

Select one of these values if the employee has a company car or van but is exempt from the normal tax rules that apply to private use of company cars:

  • Alternately Use Company Van: The employee can use the company van for private use as an alternative to using their own vehicle.

    Alternately Use Company Van: Select this value if the company van is used by more than one employee with a continuous alternating use and without a fixed schedule, so that the personal advantage of using the company car is difficult to determine.

    For example, there could not be a specific schedule where two employees would take turns using the company van every other week.

  • Employer Arrangement: The employer has an agreement with the Tax Authority.

  • Personal Arrangement: The employee has a personal agreement with the Tax Authority.

  • Other Evidence: Select if there is any other reason for the exemption.

Savings Plan

Select a savings plan if the employee contributes to a plan. There are two type of savings plan: Life Cycle Arrangement or Save As You Earn.

Employer Tax Reduction

If the employee is eligible for a tax deduction for education, select one of the these values to indicate which category:

  • Education - Common

  • Education - Competencies

  • Education - Qualification

  • Education - Trainee

Percentage Special Tax Rate

Enter the percentage special tax rate for special tax cases.

Anonymous Rate

Select to indicate when an employee doesn't provide the documentation that is regarded as official proof of identity

When this occurs, the highest tax rate is applied in order to discourage illegal immigration.

Taxable Income

Enter the employee's annual taxable income in euros (EUR). Enter a gross amount before tax deductions.