Calculating the income-dependent contribution pursuant to the Health Care Insurance Act (Zvw)

Pursuant to the Health Care Insurance Act (Zvw) employees must pay their health care insurer a nominal contribution for their health care insurance. In addition, you pay the Tax and Customs Administration an employer's contribution pursuant to the Health Care Insurance Act (Zvw) for your employee. In a number of instances your employee pays a contribution pursuant to the Health Care Insurance Act (Zvw), which you withhold from the employee's wages. The umbrella term for the contribution pursuant to the Health Care Insurance Act (Zvw) and the employer's contribution pursuant to the Health Care Insurance Act (Zvw) is 'income-dependent contribution pursuant to the Health Care Insurance Act (Zvw)'.

When do you not pay an employer's contribution pursuant to the Health Care Insurance Act (Zvw) or withhold a contribution pursuant to the Health Care Insurance Act (Zvw)?

You do not need to pay an employer's contribution pursuant to the Health Care Insurance Act (Zvw) or withhold a contribution pursuant to the Health Care Insurance Act (Zvw) in the following situations:

  • You pay wages to seafarers. These could also be share-fishermen – working on board a maritime vessel.
  • You may or must deem the wages to be final levy wages. See Final levy.

Calculating the employer's contribution pursuant to the Health Care Insurance Act (Zvw) and contribution pursuant to the Health Care Insurance Act (Zvw)

You calculate the employer's contribution pursuant to the Health Care Insurance Act (Zvw) and contribution pursuant to the Health Care Insurance Act (Zvw) on the wages you pay in the wage period. You then use the progressive accrual calculations method.

In analogy with the other payroll taxes, you calculate the employer's contribution pursuant to the Health Care Insurance Act (Zvw) by wage period. The wage period for the employer's contribution pursuant to the Health Care Insurance Act (Zvw) is the same as the wage period you use for wage tax/national insurance contributions. When you, for example, use the monthly table to calculate the wage tax/national insurance contributions then you also calculate the employer's contribution pursuant to the Health Care Insurance Act (Zvw) and the contribution pursuant to the Health Care Insurance Act (Zvw) on the basis of 1 month.

Maximum wages for contribution purposes for the Health Care Insurance Act (Zvw)

When you calculate the income-dependent contribution pursuant to the Health Care Insurance Act (Zvw) you take account of the maximum wages for contribution purposes for each employee for each wage period. The maximum wages for contribution purposes serve as the maximum amount for which you calculate the income-dependent contribution pursuant to the Health Care Insurance Act (Zvw).

Anonymous employees

You may not take account of the maximum wages for contribution purposes when you calculate the income-dependent contribution pursuant to the Health Care Insurance Act for anonymous employees. As a result, in some instances you may need to pay an employer's contribution pursuant to the Health Care Insurance Act (Zvw) or withhold a contribution pursuant to the Health Care Insurance Act (Zvw) which is higher than the customary amount.

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