• LUMP SUM VALUATION OF CERTAIN PROFESSIONAL COSTS BY THE NSSO - NEW FIXED AMOUNT FOR HOME OFFICE COSTS

LUMP SUM VALUATION OF CERTAIN PROFESSIONAL COSTS BY THE NSSO - NEW FIXED AMOUNT FOR HOME OFFICE COSTS

21 June 2015

The notion of salary for social security purposes excludes the professional costs that are paid in advance by the employee, but need to be borne by the employer in execution of the employment contract (fi. transportation costs, phone,…).

The employer must be able to provide documentary proof that the valuation of the cost is correct. From 1 January 2010 the legislator introduced the principle that in case of discussion, it is the employer who needs to prove the accuracy of the costs.

Lump sum valuation of small costs

Small costs that are difficult to prove, can be lump sum valuated. In that case, however, the employer must be able to justify the applied lump sum valuation. Amounts that exceed the actual costs are considered to be salary and hence sublject to social security contributions.

The table in the right screen section (interesting links) is an overview of the different costs for which the NSSO accepts a lump sum valuation. It is clear that these amounts cannot be applied without any justification, as they are fixed amounts that are deemed to cover expenses actually borne. Upon request of the NSSO, the employer must be able to justify the applied system of reimbursement of costs through underlying documents such as work regulations, internal service instructions or enclosures to the employment contract and demonstrate the plausiblilty of the costs reimbursed, based on the job description and working conditions of the related employee.

Fixed maximum amounts or justification of higher costs

The amounts referred to in the table are maximum amounts. However, if the reimbursed costs exceed the generally accepted lump sum amounts, the employer can also choose to prove the higher cost. In such event he must prove the reality of the cost. However, both systems, justification of actual costs and lump sum valuation, cannot be combined for a single cost type.

In no event the costs paid in advance by the employees may be reimbursed twice. The NSSO will, therefore ,only accept the the lump sum valuation on the condition that the costs concerend had not already been reimbursed via a different path.

For the application of the home office lump sum cost allowance, the NSSO issued extra conditions for the employees that are subject to the regulations on working time.

Lump sum valuation does not always correspond with accepted fixed amounts for tax purposes

Please also bear mind that these lump sum amounts applicable for social security purposes are not always equal to those accepted for tax purposes.

Previous tables:

Table 01.04.2015

Table 01.07.2014

Contact

Our Social Lagal team can be contacted in case of questions regarding this topic:

Ria Matthijssens: [email protected]
Tom Laureys: [email protected]
Katleen Engelen: [email protected]