9 questions and answers about homework money

The advent of the new targeted tax exemption for reimbursement of homework expenses raises some questions. In response to answers from the Ministry of Finance to questions from the Folketing, cm states: here, what the homework money means for employers and employees.

From 1 January, there will be a special tax exemption for reimbursement of expenses for home work. This means that the compensation that more and more companies paid out as the pandemic and homework counseling continued to apply will no longer be at the expense of the vacancy in WKR. The work-related costing scheme will be evaluated in 2023 and the effectiveness of this new exemption will also be examined.

1. What does that compensation look like?

From 1 January 2022, entrepreneurs can give their staff a tax-free allowance of two euros per year. working day. The exemption for a fixed amount of a maximum of two euros per day (partially) worked from home must then be described as final salary within work-related costs (WKR). This means that the employer does not have to pay payroll tax on this compensation.

Also read: Peter Hoogstraten lists the changes in payroll taxes for 2022: ‘The devils are in the details’

2. Should employers provide this compensation?

New. Keeping up with the administrative requirements for homework money (see below: the 128-day scheme) is an additional burden for employers. To make this more flexible, an administrative scheme has been chosen, reminiscent of the scheme for tax-free reimbursement of travel expenses. Targeted tax exemption is an option that employers can make use of, but it is certainly not an obligation. However, more than half of the companies now provide such compensation, and perks are essential for retaining and recruiting staff – so it is recommended.

3. What is 128-day homework?

For the homework money, the employer can take on a proportionate 214 working days per. calendar year, provided that the employee works at home for at least 128 working days. If the homework pattern deviates significantly from this, the expense reimbursement may be reconsidered. However, the compensation must not be adjusted immediately if an employee occasionally deviates from this agreement. This scheme works in the same way as the 128-day travel expenses scheme. For part-time employees, the pattern is adjusted pro rata.

If an employee works 1 day a week, the standard is 1/5 of 128 days to check against the 128-day scheme. With a minimum of 26 days of homework per. calendar year, the employee meets the standard for the specific exemption for homework money. The employer can then give homework allowance as if the employee works from home 1/5 x 214 = 43 days per. calendar year.

If there are structural changes in the homework pattern, the scheme needs to be adapted. Employers must register the relationship between homework and work in the workplace. If the tax authorities request this during a due diligence, these agreements with (part-time) employees must be clear. All business trips that fall outside the normal scheme must be recorded using declarations.

NOB found this scheme unnecessarily complicated. The Association of Tax Advisers has suggested that employees choose between a 128-day travel expenses scheme or whether it is applied to homework money. According to outgoing Secretary of State Vijlbrief, this leads to an undesirable connection between the homework money and the travel allowance. This would mean that someone who lives further away can receive higher compensation than someone who lives close to work. Vijlbrief does not like this, because the cost of working from home is the same for everyone, regardless of the distance to work.

Also read: Step-by-step plan WKR: How do you implement the work-related costing scheme?

4. Is leave taken into account when determining working days under the 128-day scheme?

The 128-day scheme takes into account that the employee does not have to work for a number of days, such as leave, illness, training, etc. If the employee works 128 days, the employer can base the compensation on 214 days.

5. How does an employer relate to a public transport subscription in combination with working from home?

The specific exemption from the homework money does not apply if the employee uses his or her public transport subscription on the same day to go to a permanent workplace.

6. What is the prohibition against including the travel allowance?

In short, this means that one tax exemption can be used on a weekday: the tax-free travel allowance or the tax-free home work allowance. If an employee one day works partly from home and partly in the office, the employer must choose between one of the two dispensations. If both allowances are granted, one of the two counts as taxable allowance. Entrepreneurs should pay special attention to this if this compensation is provided on a declaration basis. In the case of a combination, an employer may designate one of the benefits as a final tax component for the free space within WKR.

7. Does this prohibition also apply to itinerant employees and temporary staff?

The same rules apply to itinerant employees and temporary staff.

8. What is the impact of rising energy prices?

Energy costs will increase for many households in the coming year due to the higher gas price and the elasticity of the electricity price. This means that it is more expensive to work from home. The current tax exemption of 2 euros per. working day at home was established in August 2021 based on estimates from Nibud. That amount will be indexed by a correction factor, but it will be in 2023 for the first time. No temporary adjustment is provided.

Read also: Marjol Nikkels lists the changes in social security for 2022

9. What if we start working less from home after the pandemic?

There is no horizon provision in the current system of home work benefit. Various studies, including from the Knowledge Institute for Mobility, show that employees also want to work from home one to three days a week after corona. Therefore, SER will issue a council on hybrid work for the next cabinet. Likewise, tax rules and possible solutions to facilitate hybrid work are being considered.

This article was published on October 20, 2021 and updated on January 19, 2022.

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