Do you innovate or do your activities match a goal from the government? Then it is likely that you are eligible to a subsidy! There are various subsidies and allowances that are made available by your region, the national government or even Europe. The huge advantage is that your wage costs will decrease. The subsidies you should think of are, for instance, for hiring an unemployed 56-plus person or a handicapped worker falling under the ‘job agreement’ (banenafspraak).
Determining of and applying for subsidies
It all sounds very good, but how do you know which subsidies you are entitled to? How do you determine which subsidies match your goals? Which rules apply to the application? And last but not least; how do you apply for the subsidies?
Our salary advisers are fully up-to-date regarding the possibilities and requirements. We frequently advise clients regarding the benefits of subsidies and regularly apply for them on behalf of clients. Below you will find some of the common subsidy applications we take care of.
The ‘WBSO’ for research and development projects
If you start a research and development project (R&D), you can lower your costs via the WBSO (Wet Bevordering Speur- en Ontwikkelingswerk). The WBSO subsidy provides an allowance to Dutch companies occupied with technical innovation. Through the WBSO you create “extra budget” which you can use for the technical development of products, production costs or software. We provide advice or we can file the application on your behalf; regardless of whether you are a freelancer, start-up, SME or multinational.
Labour cost benefits for employing a person who receives unemployment benefits
Are you hiring someone who currently receives unemployment benefits? You might be entitled to one or several labour cost benefits (loonkostenvoordelen). There are four potential target groups for the labour cost benefits:
- Employees of the age of 56 and above;
- Employees that fall under the ‘target group job agreement’ (doelgroep banenafspraak);
- Handicapped employees who are newly employed;
- Handicapped employeed who are relocated with you.
The monetary benefits depend on the target group the employee falls under. Your employee must prove that he is registered in the so-called target group register (doelgroepregister) by providing a target group statement. As soon as you have the target group statement, you can file the application. Our specialists are more than willing to support you or take care of the application on your behalf.
Lower wage costs by utilizing the low-income benefits
Do you have an employee who receives a low salary? You might be entitled to wage cost benefits, called the low-income benefit (het lage-inkomensvoordeel (LIV)). Two rules apply to the LIV:
- The employee must work a minimum of 1.248 hours per annum and
- The employee must earn an average hourly wage of 100-125% of the minimum wage.
You do not have to do anything to receive low-income benefits. The UWV (Employee Insurance Agency) will calculate this automatically based on the filed wage tax returns. It is therefore of great importance that you conduct a solid salary administration and that your wage tax returns are filed correctly. Feel free to consult our advisers regarding your salary administration and wage tax returns. The Dutch tax office will pay the low-income benefit at the end of the calendar year.
Wajong unemployment benefits? Wage dispensation!
If you employ an employee who receives Wajong unemployment benefits, and thus performs less than other employees, you are eligible for wage dispensation. This enables you to pay less wage, which will be complemented by the UWV. Wage dispensation for employees with Wajong unemployment benefits lasts a minimum of 6 months and a maximum of 5 years. After this period you can reapply for wage dispensation.
Our salary advisers can assist you regarding the wage dispensation application. Feel free to contact our office for advice.