Below you will find frequently asked questions and answers in this FAQ Personnel & Payroll Administration. If your question is not listed, please contact us.
For many companies, personnel administration is something they are not familiar with. After all, it is not the main activity of the company. Nevertheless, it is very important to organize the personnel administration properly.
What do you record in the personnel administration of an employee?
• Personal data of the employee
• Employment contracts and individual terms of employment
• Correspondence with the employee
• Functioning / training of the employee
• Data sickness absence of the employee
Our team at AAme Salary Advisors can provide you with further information on this.
Employer’s costs
You agree a gross salary with the employee, but you also have a number of financial obligations.
• The employee’s net salary must be paid on time
• Vacation pay: annual or monthly payment (usually 8%)
• Pay social security contributions (WW/WIA/ZVW) and pay wage tax
• Pension payment if applicable
These payments may differ per CLA and implementing body.
The employer’s costs are approximately 30% higher than the gross salary agreed with the employee.
Since wage tax and possible premiums are still withheld from the employee’s salary, the net wage will be much lower than the gross wage.
Secondary benefits
Secondary benefits are terms of employment you agree with the employee on top of the salary.
Some examples of secondary benefits are:
• Company car / bicycle
• Bonus / 13th month
• Childcare
• Reimbursement of travel expenses
• Training
• Sports via work
• Compensation for telephone / internet
These conditions are set out in the collective agreement or you agree them with the individual employee.
Representation allowance
To reduce administrative burdens, you can refrain from reimbursing the small expenses incurred by employees on a claim basis. Examples are: business gifts, lunches or dinners with business relations, subscriptions to professional journals, business telephone and travel expenses, overnight stays, conferences or courses.
You can agree with the employee a fixed amount per month as reimbursement for the costs incurred. However, you should not pay more than the actual amount, because the tax authorities consider this to be net pay. As an employer, you must still pay tax on this and the tax authorities can also impose a fine. These costs can mount up over a number of years, even if you only pay € 1.00 a day too much. The reimbursement rules change regularly.
AAme Advisors can provide you with detailed advice on this.
If an employee falls ill, you report the illness to your company doctor or occupational health and safety service within 4 working days. Your employee does not have to tell you what is wrong and you may not ask him about it. You do ask when he thinks he can work again and whether other work is possible during the sickness period.
You continue to pay your employee his wages. This is at least 70% of the last earned salary. If a higher percentage is stipulated in the CLA or the employment contract, you pay the higher amount to the employee. In the event of long-term illness, you must continue to pay 70% of the salary for at least two years.
If you want to know exactly what your rights and obligations are in the event of an employee’s illness, please contact one of our advisors. They will be happy to help you.
The work-related costs scheme has been mandatory for every employer since 1 January 2015 and applies to all reimbursements, allowances and facilities made available that are part of wages from current employment. Within the work-related costs scheme, you can spend up to 1.92% of your total taxable wages up to €400,000 and 1.18% of taxable wages above €400,000 on untaxed allowances and provisions for your employees.
The employees of AAme Adviseurs ensure that these allowances and benefits in kind are correctly processed in your administration. They can also monitor for you that the free margin is not exceeded.
The characteristic of a temporary contract is that the end date of the contract is fixed.
The temporary contract automatically turns into a permanent contract in the following situations:
• The employee has had more than 3 consecutive temporary contracts with the same employer.
• The employee has had more than 3 temporary contracts for the same type of work with successive employers.
(For example, if an employee first works through a temporary employment agency and then is employed directly by the employer ), and;
the break (interval) between the contracts is no more than 6 months. For temporary recurring work (not limited to seasonal work) that can be done up to 9 months per year, there may be a maximum of 3 months between contracts. This must be included in the collective agreement, and;
There are no other conditions in the collective agreement. The agreements in the collective agreement take precedence.
If you register with the Chamber of Commerce and you immediately take on staff then you can indicate this as an employer when you register.
If you are hiring staff at a later stage you can download the notification form “Declaration of wage tax notification employer”.
Our team of Aame advisors can assist you with this.
A CLA applies in the following situations.
• You have signed a collective labor agreement with one or more trade unions.
• You are a member of an employers’ organization that has signed a collective labor agreement (CAO) with trade unions for your sector.
• You are not a member of an employers’ organization, but you are covered by a CLA that has been declared generally binding
• You are not a member of an employers’ organization and you are not covered by a CLA declared generally binding, but you follow a CLA yourself.
The Aame advisors can advise you on which situation applies to you.