Work Costs Scheme WKR: everything Westland employers and employees need to know
The work costs scheme (WKR) allows employers in Westland, such as greenhouse builders and agricultural businesses, to offer tax-free reimbursements and benefits within a 'free space'. This percentage of the total payroll makes secondary employment conditions like travel expenses or a Sinterklaas gift attractive without payroll tax for the employee. Ideal for the horticulture sector to retain staff. More on travel expense allowances and WKR. If in doubt: Het Juridisch Loket Westland provides free advice.
What does the work costs scheme mean for Westland?
The WKR governs the tax treatment of non-delivery costs, such as travel reimbursements for commuters to greenhouses in 's-Gravenzande, mobile subscriptions, or company lunches. Since 2011, it has replaced the old addition rules. Employers may spend a fixed percentage of the taxable payroll tax-free. Excess leads to 80% tax on the overrun.
Key point: targeted exemptions such as home-to-work travel remain tax-free and outside the free space at all times. Perfect for Westland polder workers with long commutes.
Legal basis of the WKR
Anchored in the Income Tax Act 1964, Article 31, employers may use a forfaitaire amount over the taxable payroll (gross salary plus holiday pay). The Tax Authorities set the percentage annually. For 2024: 1.92% up to €400,000 and 1.18% above that. Report via the portal in the payroll tax return. Penalties loom for errors – consult the Rechtbank Westland in disputes.
| Year | Free space (% of payroll) | Relevance for Westland |
|---|---|---|
| 2019 | 1.80% | Standard for horticulture SMEs |
| 2020-2023 | 1.70% | Adjusted due to corona impact |
| 2024 | 1.92% (up to €400k), 1.18% above | Extra for vitality in physical work |
Calculate the free space for your Westland business
Free space = forfait × payroll. Example: €1,000,000 payroll in a Westland glasshouse horticulture company: (1.92% × €400,000) + (1.18% × €600,000) = €14,760. Carryover of surplus (max. 80%) is possible. Use Tax Authorities tools.
Targeted exemptions outside the free space
Always tax-free:
- Home-to-work travel expenses (up to €0.23/km, 2024) – crucial for Westland commuters.
- Business phone/internet for field work.
- Work-related training.
- Relocation costs to Westland.
Westland practical WKR examples
Example 1: Greenhouse worker. €200 travel expenses (exempt), €50 client gift and €300 tablet (free space). With €500,000 payroll (€9,600 space): well within limits.
Example 2: Excess. Horticulture SME with €200,000 payroll spends €5,000 on parties: €1,160 overrun × 80% = €928 tax.
Example 3: Vitality. Extra budget for physiotherapy, popular with seasonal workers since 2021.
Rights and obligations in Westland
Employers:
- Obligation: Administration and reporting; retain for 7 years.
- Right: Flexible budgeting.
Employees:
- Right: Exempt benefits.
- Obligation: Report private use.
Frequently asked questions WKR Westland
Excess free space?
80% tax; carryover or planning prevents this.
Travel expenses under WKR?
No, targeted exemption. Details.
Combination with collective agreement?
Yes, if WKR-compliant; check tax aspects.
ZZP'ers in Westland?
No, only employment relationships; temps via hirer.
Tips for Westland employers
- Plan early: Calculate space and discuss with team, e.g., for bike schemes.
- Prioritise exemptions: Maximise travel and business expenses.
- Follow updates: Via Tax Authorities or Het Juridisch Loket Westland.
- Invest in vitality: Use for health in demanding horticulture work.