Payroll taxes for foundations and associations
When foundations and associations employ people, they are faced with payroll taxes. However, it is also possible that this happens without intention and it turns out - often in retrospect - that the organisations has been insufficiently 'in control'. The result: unexpected extra costs.
Hiring self-employed persons and volunteers
For example, when hiring self-employed persons who turn out not to be self-employed, (unexpected) payroll tax costs occur. This category also includes persons who are called in for various (sub)committees, and who receive an attendance fee for this. These persons may be employees, whereas parties thought they were dealing with self-employed persons.
Payroll taxes may also play a role when hiring volunteers, for example because the volunteer turns out not to be a volunteer after all or because the limits of the voluntary scheme are exceeded. When hiring personnel, the Wages and Salaries Tax and Social Security Contributions (Liability of Subcontractors) Act may also be used to recover any payroll taxes not paid by the outsourcing party / (sub)contractor from the foundation or association. There may also be unexpected additional tax assessments following a tax audit if the administration is not in sufficient order and/or if reimbursements or benefits to employees have been administered incorrectly and therefore the requirements of the taxation of employee benefits scheme are not or insufficiently met.
The main risk factors for foundations and associations are as follows:
- Hiring self-employed persons: contracts with self-employed persons are frequently entered into, without sufficiently assessing whether the 'self-employed person' should not be regarded as an employee after all for the purposes of payroll tax.
- Hiringpersonnel: when hiring personnel via an employment agency / payrolling agency / secondment agency, the hirer’s liability plays a role. It is possible to limit this risk, but this requires action to be taken by the foundation or association.
- Volunteers: which conditions must be met? When is someone a volunteer?
- Taxation of employee benefits scheme: it is important for the organisation's own personnel to comply with the rules laid down in the Wage Tax Act and related regulations, including the Taxation of employee benefits scheme.
Make sure you have a good insight into the payroll tax position of your foundation or association. This allows you to reduce the risks mentioned. Consider for instance proper information provision, a correct set-up of the business processes, in which all aspects of payroll taxes are clearly visualised in the various departments, and being 'in control' in the field of payroll taxes.
Want to know more?
Would you like to know more about payroll taxes for your foundation or association? Please contact Martin Aandewiel by e-mail or by telephone: +31 (0)88 277 13 96 or Marco Zimmerman by e-mail or by telephone: +31 (0)88 277 20 65 or Renée Pauli by e-mail or by telephone: +31 (0)88 277 24 38. They will be happy to help you.
Mazars Special - Belangenorganisaties in Control
Het landschap van belangenorganisaties verandert. De ene generatie is de andere niet en nieuwe generaties brengen nieuwe inzichten mee. Ledenaantallen bij verenigingen lopen terug in een land waar het verenigingsleven altijd belangrijk is geweest. Belangenorganisaties moeten voortdurend aandacht hebben voor hoe zij waardevol kunnen zijn en blijven voor hun leden en de maatschappij. Maar hoe doet u dat?