The Work Costs Scheme (WKR) offers employers the opportunity to provide certain reimbursements and provisions to employees tax-free. Optimally utilizing the available space within the WKR is essential to achieve both fiscal benefits and to increase employee satisfaction and engagement. This article discusses ways to utilize the remaining WKR space in a fiscally advantageous manner for both the employee and the employer. Companies often have WKR space left at the end of the year, which is a missed opportunity to save money for both parties.

What is the WKR?

The WKR is a scheme that allows employers to reimburse certain costs for employees tax-free. This is done within a certain 'available space', which depends on the total wage bill of the company:

• 2% of the taxable wage bill up to €400,000.

• 1.18% of the remaining wage above €400,000.

Amounts above these limits are taxed with a final tax of 80%.

Scenario and calculation example: optimizing remaining WKR space

Scenario

Assume you have €200 left per person in the WKR and you have 100 employees. We will calculate what this can yield for both the employer and the employee, assuming 18% social security contributions and the most common income tax scale for employees (37.5% tax).

Calculations

1. Total remaining WKR space:

• Per person: €200

• Number of employees: 100

• Total remaining space: €200 * 100 = €20,000

2. Benefits for the employer:

2.1 Savings on social security contributions:

• Social security contributions: 18%

• Savings: €20,000 * 18% = €3,600

3. Benefits for the employee:

3.1 Savings on income tax:

• Income tax in the middle bracket: 37.5%

• Savings per employee: €200 * 37.5% = €75

• Total savings for all employees: €75 * 100 = €7,500

Summary of benefits

For the employer:

• Total savings on social security contributions: €3,600

For the employees:

• Total tax savings: €7,500

• Savings per

• employee: €75

Total financial savings:

• Combined benefit for employer and employees: €11,100

Conclusion

By effectively utilizing the remaining WKR space of €200 per employee, the company can realize a total saving of €11,100, divided between savings for both the employer (€3,600) and the employees (€7,500 in total, €75 per person). This scenario shows how strategically using the WKR space can yield significant financial benefits for both parties.

Benefits of exchanging with Alleo

• Integration with HR systems and payroll: seamless integration with systems such as Personio, AFAS, Nmbrs, Loket, and HiBob.

• Collective benefits: employees benefit from average collective advantages of up to 20%.

• No administrative burdens: Alleo takes full care of the administrative processing, saving time and effort.

• Attractiveness for employers: increases the attractiveness of the employer and helps retain and engage employees.

• Access to more tax benefits: options such as leasing bikes and buying/selling holiday days are easy to manage.

• Diverse offerings: a wide range of secondary benefits, tailored to the diverse needs and life stages of employees.

• User-friendly app: employees can easily manage their secondary benefits through a user-friendly app.

• Support and advice: expert support and tailored advice for optimally utilizing the WKR.

Download the full WKR report via this link.