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Annual statement of earnings
I would like to include assignments that were paid in 2011 as part of my income for 2010.
Our salary administration for 2010 is closed. It is no longer possible for us to make any changes to it.
If you contact the tax service, they will say that it is still possible to make changes. However, we do not do this. The reason for this is that if there are changes then new information has to be sent to the tax service for everyone included in our administration, which involves thousands of people. This is liable to lead to errors and therefore we prefer not to do it.
We have drawn attention to the procedure for year end on several occasions in the newsletters in order to give you time to organise matters properly in advance.
More than one annual statement of earnings?
If you have worked via more than one subsidiary, you will receive more than one annual statement of earnings. The amounts do not need to be added together and can be filled in separately in your income tax return (aangifte Inkomstenbelasting).
Why are there no Health Insurance Act contributions (ingehouden bijdrage Zorgverzekeringswet) listed on my annual statement of earnings?
Under the performing artists' tax scheme in 2011, no income-related contributions are deducted from gross wages/fees. This means that, if a freelancer has worked as a performing artist, a premium of 5.65% of fees is due when completing the income tax return (aangifte Inkomstenbelasting) for 2011. This premium must then be paid to the tax service.
What is the salary for the purposes of the Health Insurance Act (Loon Zorgverzekeringswet)?
This is the total amount in respect of which Health Insurance Act (Zorgverzekeringswet) contributions are paid.
What is the Health Insurance Act premium (ingehouden bijdrage Zorgverzekeringswet)?
A premium of 7.75% of an employee's salary, up to a maximum annual salary of €33,427 (2011), is compulsorily withheld for Health Insurance Act contributions (bijdrage Zorgverzekeringswet). The employer is required to reimburse these income-related contributions in full for all his workers. The employee is then liable for tax on this reimbursement. The employee transfers the contributions to the tax service direct.
What is the working person's tax credit (verrekende arbeidskorting)?
The working person's tax credit (arbeidskorting) is a reduction in income tax (loonheffing), The tax credit is calculated on the basis of the wages in current employment excluding extraordinary remuneration (for example, holiday pay) and for employees aged under 57 years at the beginning of the calendar year it is restricted to a maximum of €1,574 per year (2011). A higher tax credit applies for older employees:
- For employees aged 57, 58 or 59 at the beginning of the calendar year, the maximum tax credit is €1,838 per year
- For employees aged 60 or 61 at the beginning of the calendar year, the maximum tax credit is €2,100 per year
- For employees aged 62, 63 or 64 at the beginning of the calendar year, the maximum tax credit is €2,362 per year
What are income tax deductions (ingehouden loonheffing)?
Income tax and national insurance contributions are referred to collectively as income tax (loonheffing) because the party required to withhold them (in this case Tentoo) deducts them and transfers them to the tax service as a single amount.
Where can I find the amounts in my annual statement of earnings on my last payslip for 2010?
Your wages for the purposes of income tax (loonbelasting) are listed with the cumulative amounts with the description "Loon loonheffing" and this amount is rounded down to the nearest euro. The tax and national insurance contributions that have been deducted from your wages (ingehouden loonheffing) are also listed with the cumulative amounts with the description "loonheffing" and this amount is rounded up to the nearest euro.
