Work Costs Scheme WKR: Complete Guide for Employers and Employees in Tilburg
The work costs scheme (WKR) allows employers in Tilburg, from textile companies to logistics firms in the municipality of Tilburg, to provide reimbursements and extras to employees tax-free within a 'free space'. This portion of the payroll sum enables secondary benefits such as travel expenses or a Sinterklaas gift without wage tax for the employee. Ideal for the competitive Tilburg business environment. More about travel expense allowances and WKR.
What does the work costs scheme mean for Tilburg?
The WKR governs the tax treatment of non-delivery costs, such as travel reimbursements, smartphones, or canteen lunches at Tilburg offices. Before 2011, the rules were complex with add-backs; now there's one simple system. Employers may spend a fixed percentage of the fiscal wage sum tax-free. Exceed the free space? Then you pay 80% tax on the excess.
Note: specific exemptions, such as reimbursements for commuting from Tilburg neighborhoods, are always tax-free and excluded from the pot.
Legal basis of the WKR
Anchored in the Wage Tax Act 1964 (article 31), employers in Tilburg may use a fixed percentage of the fiscal wage sum (gross salary plus holiday pay) as free space. The Tax Authorities set the percentage annually. For 2024: 1.92% up to €400,000 wage sum and 1.18% above that. Report via the portal in your payroll tax return, or risk fines. For questions: the Legal Aid Office Tilburg offers free initial advice.
| Year | Free space (% wage sum) | Remarks for Tilburg |
|---|---|---|
| 2019 | 1.80% | Standard for local SMEs |
| 2020-2023 | 1.70% | Adjusted due to corona impact |
| 2024 | 1.92% (up to €400k), 1.18% above | Extra for vitality, useful for Tilburg vitality projects |
Calculating your free space in Tilburg
Free space = fixed percentage × wage sum. Example: a Tilburg company with €1,000,000 wage sum in 2024: (1.92% × €400,000) + (1.18% × €600,000) = €14,760. Carry over excess? Maximum 80%. Use Tax Authorities tools and keep records.
Specific exemptions outside the free space
Always tax-free in Tilburg:
- Commuting travel expenses (up to €0.23/km, 2024).
- Business phone/internet.
- Work-related training.
- Relocation costs for new jobs.
WKR in practice for Tilburg companies
Example 1: Office employee in Tilburg. €200 travel expenses (exempt), €50 Christmas hamper and €300 laptop from free space. With €500,000 wage sum (€9,600 space): no issue.
Example 2: Local SME exceeds. With €200,000 wage sum (€3,840 space) €5,000 on parties: €1,160 excess × 80% = €928 tax.
Example 3: Vitality. Extra budget for sports, perfect for Tilburg welfare initiatives.
Rights and obligations under WKR in Tilburg
Employers:
- Obligation: Maintain correct administration and filings.
- Right: Flexible budgeting.
Employees:
- Right: Tax-free perks.
- Obligation: Report private use.
Frequently asked questions about WKR in Tilburg
What if you exceed the free space?
80% tax on the excess. Carry over or plan to avoid.
Do travel expenses fall under WKR?
No, specifically exempt. Details.
WKR with collective agreements in Tilburg?
Yes, if tax-compliant. Check with the Municipality of Tilburg or CAO offices.
Self-employed or temps?
Only employment relationships. Self-employed: VAT rules; temps: hirer responsible.
Tips for employers in Tilburg
- Plan early: Calculate space and discuss with team.
- Choose locally relevant: Prioritize travel or vitality for commuters from surrounding villages.
- Seek advice: Via Legal Aid Office Tilburg for tailored support.