Calculating the correct tax and social security base
COMPaRE is a web-based application for expat related compensations that automatically calculates the correct tax and social security base with less risk, in an efficient manner, leading to a very accurate result. The output is made available in a clear and transparent overview, with the possibility of a direct export into the payroll. Furthermore all data can be used to provide actionable insights.
Do you experience difficulties with calculating the correct tax and social security base for expats? When dealing with expats an employer usually has to deal with compensation items like hotel costs, travel expenses, shipment costs, foreign social security and pension contributions, for which the tax and social security positions have to be determined. The compensation items can be in different currencies that have to be converted into euros. Also a workday allocation also has to be applied for each item and expat individually.
Deloitte has created a fiscal-knowledge database that analyses and determines whether compensation items are taxable or non-taxable, deductible or non-deductible. Other considerations, such as a 30%-ruling, a corresponding approval for pension, an A1, or certificate of coverage for social security purposes, are all included in the database to automatically determine the correct taxable compensation. This taxable compensation is combined with workday allocations and exchange rates leading to the correct amount of the tax and social security base.
Deloitte provides a solution named COMPaRE that automatically calculates the correct tax and social security base of expat compensation. The generated output provides a clear and transparent overview, with the possibility of a direct export into the payroll. All relevant data can be used to provide actionable insights, helping to control employment costs, secure compliance, and leading to opportunities for savings.