Solutions

Payroll Incentives

Effective use of available reductions and exemptions

Federal and regional governments have taken various actions to reduce employment cost for targeted employee populations and employment sectors. Each scheme has been specifically designed and implemented to reduce employer costs.​

These incentives can be claimed through a partial exemption on the payment of withholding taxes or a reduction on employer social security contributions.​

Challenges

Deloitte approach

The payroll incentives landscape has become more complex. The increased focus by the authorities is resulting in a more structural audit approach.​

Difficulties that companies encounter: 

  • Handling frequent law changes on federal, regional and sector level prevents them from gaining the full benefit of payroll incentives​
  • Struggling with a tax audit or with a social inspection​
  • Encountering difficulties with (retroactive) implementation​

With a dedicated team comprising consultants in the field of social security, withholding taxes and technology, as well as legal profiles, we help companies ensure compliance and enable them to benefit from the cost-saving measures to which they are entitled.​

Deloitte follows a specific methodology with the use of various tools for (big) data analytics. We ensure timely handling, in depth analysis and correct saving measure calculation, liaison with payroll agency for implementation purposes, and provide the possibility for knowledge transfer to the HR team. We also focus on preventive and reactive audit support.​

Key areas

Feasibility study
Assistance with implementation
Audit support
Analysis of gathered information based on checklists and proven experience in identifying potential employment cost saving measures.​ Calculation of incentives and coordination with payroll agency and/or HR & Payroll department (including for past periods). Including guidance and support to build up documentation.​ Preventive action: Stress-test to identify and quantify risks and remediation measures to improve reliance and secure the payroll incentives.​

Response to Audit: technical support during audit, including discussions with the authorities.