Newsflash from iQOUNT Consultants & Accountants | Employer roast and payroll taxes

If an employer organizes a barbecue for their employees, this could have payroll tax consequences. Tax and Customs Administration puts two examples in the guide: barbecue in the workplace and barbecue outdoors.

The employer organizes a barbecue for his employees. Staff partners are also invited. A total of 60 people come

The employer bears the following costs:

Barbecue and drinks: 1500 EUR
Performer: 1,200 EUR
Total: 2700 euros

Barbecue in the workplace
If the barbecue is carried out in the workplace, the following classification applies to the components of the barbecue:
Beverages Served: Tax Free (No Rating)
Performance: untaxed (no assessment)
Meals provided: 3.35 EUR per employee or partner of the employee

The employer can choose to add €3.35 to the employee’s wages. If the employee takes his partner with him, the employer must include 3.35 euros x 2 = 6.70 euros in the employee’s wages.

The employer can also choose to define the wage as the final tax wage for the work-related cost system and include it within the discretionary margin. There is no specific exception. In total, the employer can specify the following amount: 3.35 euros x 60 people = 201 euros. If the free space is exceeded, the employer pays a final tax of 80%.

Outdoor barbecue
If the barbecue is in a remote location, the following classification applies to the components of the barbecue:
Drinks and meals (1500: €60): €25 per employee or partner of the employee)
Performance (1,200 €: 60): € 20 per employee or partner of the employee
Total: €45 per employee or partner of the employee

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The employer can choose to count €45 as part of the employee’s wages. If the employee takes his partner with him, the employer must add €45 x 2 = €90 to the employee’s pay.

The employer can also choose to define the wage as the final tax wage for the work-related cost system and include it within the discretionary margin. There is no specific exception. In total, the employer must determine the total costs of 2,700 euros). If the free space is exceeded, the employer pays a final tax of 80%.

Tip: Grilling in the workplace means less pay tax than grilling outdoors. The free space in the work-related costing scheme aims, among other things, to smooth out these types of differences. But then you have to apply this arrangement correctly. We are happy to advise you.

Source: Editors Accountant Portal

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