Uniform wage concept for payroll taxes

You calculate the payroll taxes on the wages. The wages are understood as everything a employee receives pursuant to the employment contract. The wages for the purposes of wage tax/national insurances, for employed persons' insurance and for the Health Care Insurance Act (Zvw) are identical. There are still 2 differences:

  • Wages from previous employment, such as (pre)pension benefits and early retirement benefits, are deemed to constitute wages for the purposes of wage tax/national insurance and the Health Care Insurance Act (Zvw), but not for the purposes of employed persons' insurance schemes. This is because persons receiving (pre)pension benefits or early retirement benefits are not insured for employed persons' insurance schemes.
  • The final levy wage (see Final levy) is deemed to constitute constitute wages for the purposes of wage tax/national insurance, but not for the purposes of employed persons' insurance schemes or the Health Care Insurance Act (Zvw). The wages for which the Tax and Customs Administration applies a final levy by the imposition of a final levy additional assessment constitute an exception: these wages are regarded as wages for all payroll taxes, unless you could or should have designated these wage components as wages for final levy purposes.

On occasion, wages from previous employment can nevertheless be deemed to be wages for all payroll taxes

The following wage components are always deemed to be wages for the purposes of wage tax/national insurance, employed persons' insurance schemes and the Health Care Insurance Act (Zvw), even when these wage components are wages from previous employment:

  • Unemployment Insurance Act (WW), Sickness Benefits Act (ZW), Occupational Disability Insurance Act (WAO) and Work and Income according to Work Capacity Act (WIA) benefits
  • supplements to the Unemployment Insurance Act (WW), Sickness Benefits Act (ZW), Occupational Disability Insurance Act (WAO) and Work and Income according to Work Capacity Act (WIA) benefits
    These supplements are wages for the purposes of the employed persons' insurance schemes during the period of employment.
  • Supplementary Benefits Act benefits
  • wages paid pursuant to the obligation to continue to pay wages during sick leave and the wages supplementary to that obligation, or the wages paid to civil servants pursuant to comparable regulations
  • benefits paid in connection with pregnancy, childbirth, adoption and the care of foster children pursuant to the Work and Care Act

Please note!

In contrast to Unemployment Insurance Act (WW), Sickness Benefits Act (ZW), Occupational Disability Insurance Act (WAO) and Work and Income according to Work Capacity Act (WIA) benefits, benefits paid by banks or insurance companies in connection with illness, invalidity or an accident, as well as (the lump sum payment for) an annuity, are not deemed to be wages for the purposes of employed persons' insurance schemes. These are benefits which are paid pursuant to insurance taken out personally by the employee. This also applies to payments from a fund in connection to the 'reparation of the 3rd year of the unemployment benefit'.

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