Work Costs Scheme WKR: Complete Guide for Employers and Employees in Rijswijk
The work costs scheme (WKR) allows employers in Rijswijk to offer reimbursements and benefits to staff tax-free within a specific 'free space'. This portion of the payroll enables fringe benefits such as travel expenses or end-of-year gifts without wage tax for the employee. For businesses in Rijswijk, this is ideal for staying competitive in the region. More on travel expense allowances and WKR. Consult Het Juridisch Loket Rijswijk for local advice.
What does the work costs scheme mean for Rijswijk?
The WKR governs the tax treatment of non-delivery costs, such as travel reimbursements, smartphones, or staff meals. Before 2011, complex addition rules applied; now there's one simple system. Employers in Rijswijk may spend a fixed percentage of the taxable payroll tax-free. Exceed the free space? You'll pay 80% tax on the excess.
Important: specific exemptions such as home-to-work travel remain untaxed and outside the free space at all times. This provides flexibility for local employers.
Legal basis of the WKR
The WKR is included in the Wage Tax Act 1964 (Wet LB), specifically Article 31. This stipulates that a forfait percentage of the taxable payroll (gross salary plus holiday pay) qualifies as free space. The Tax Authorities publish the percentage annually.
In 2024, it is 1.92% on the first €400,000 payroll and 1.18% above that (Tax Authorities, 2023). Rijswijk employers track this via the work costs forfait portal and report it in the payroll tax return. Errors risk fines; disputes may go to the District Court of Rijswijk.
| Year | Free space (% payroll) | Notes |
|---|---|---|
| 2019 | 1.80% | Fixed percentage |
| 2020-2023 | 1.70% | Adjusted due to corona |
| 2024 | 1.92% (up to €400k), 1.18% above | Increased for vitality |
Calculating the free space in practice
Free space = forfait × payroll. For a Rijswijk company with €1,000,000 payroll in 2024: (1.92% × €400,000) + (1.18% × €600,000) = €7,680 + €7,080 = €14,760. Excess is taxable at 80%, but carry-forward is possible (up to 80%). Use Tax Authorities tools.
Specific exemptions and exceptions
Certain items remain outside the free space and are always untaxed:
- Home-to-work travel expenses (up to €0.23/km in 2024).
- Business phone and internet.
- Work-related training.
- Relocation costs for staff.
Examples of WKR application in Rijswijk
Example 1: Local office. €200 travel reimbursement (exempt), €50 Christmas hamper, and €300 laptop (from free space). With €500,000 payroll (€9,600 space), no issue.
Example 2: SME overspend. With €200,000 payroll (€3,840 space) and €5,000 spending: €1,160 excess × 80% = €928 tax.
Example 3: Vitality. Extra budget for sports since 2021, ideal for Rijswijk millennials.
Rights and obligations under the WKR
Employers in Rijswijk:
- Obligation: Proper administration and reporting.
- Benefit: Flexible perks.
Employees:
- Benefit: Tax-free, no declaration needed.
- Obligation: Report private use.
Frequently asked questions about the WKR in Rijswijk
What if free space is exceeded?
80% tax on excess. Carry-forward or planning prevents this.
Do travel expenses fall under WKR?
No, home-to-work is exempt. Details here.
WKR with collective agreement in Rijswijk?
Yes, but collective agreement may not deviate from WKR. Check tax rules.
Freelancers and temps?
Only for employment relationships; freelancers via VAT, temps under hirer.
Tips for optimal WKR use in Rijswijk
- Plan early: Calculate space and discuss with team.
- Choose targeted: Prioritize popular benefits like vitality.
- Seek advice: From Het Juridisch Loket Rijswijk or accountant.
- Monitor: Use portals for real-time insight.