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Interfisc, expert in cross-border payroll

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International HR & Payroll matters

August 2022

Work and home, where do we draw the line?

Dear reader,

In our last newsletter, we answered frequently asked questions about working from home during corona times. By now much has changed, however, working from home is rapidly becoming the ‘new normal’. The Netherlands is even thinking about a legal right for workers to ‘work where you want’.

In this edition of our newsletter, we discuss the current (and future changes to the) rules regarding tax and social security payment obligations relating to cross-border workers and working from home abroad. In addition, you can read more about a number of new regulations in the Netherlands and Germany, designed to meet employees' needs in various areas during these challenging times.

Happy reading!

In this edition:

Cross-border payroll before, during and after the Corona crisis
Work where you want: at home, in the office or elsewhere?
Transparant and predictable terms of employment in the Netherlands
A warm welcome for paid parental leave in the Netherlands
"Energiepauschale" Tax allowance for employees residing in Germany
Hiring local staff abroad - how does that work?

Cross-border payroll before, during and after the Corona crisis

During the Coronavirus crisis, a temporary rule applied under which cross-border workers were permitted to work from home during Covid-19, without this resulting in their suddenly being covered by social insurance in their country of residence. From a tax point of view, the Netherlands, Belgium and Germany also agreed for the time being that the withholding of wage tax/payroll tax would continue without changes, even though the tax rules in this situation would actually give rise to an obligation to withhold in the country of residence.

The temporary rule has partially expired on 1 July 2022. This is why it is important to check the position of your cross-border workers and salary-splitters to avoid penalties.

Work where you want: at home, in the office or elsewhere?

Many employees want to continue working at home (full-time or part-time) even after corona. For many people, working from home helps create a better work-life balance. Others find that working from home makes the work-life balance worse because you are never completely ‘away from work’. In any case, long and hard thinking is going into how to develop this issue. Remote working is a hot topic worldwide.

In the Netherlands, the government is even thinking about a ‘Work Where You Want Act’. Does this mean that in the future, all employees will be able to work from a desk on a tropical island?

Transparent and predictable terms of employment in the Netherlands

In part to avoid competition on employee benefits within the EU, the EU Directive on Transparent and Predictable Terms of Employment was created. In the Netherlands, this was converted into national legislation as of 1 August 2022. What changes for you?

A warm welcome for paid parental leave in the Netherlands

Last year, we noted that parents in the Netherlands enjoy shorter leave around the birth of their child than in surrounding countries (read the article).

As of 2 August 2022, this has changed. Parents can now apply for nine weeks of paid parental leave in the Netherlands. Parents could already take 26 weeks of unpaid parental leave until their child's eighth birthday. And since 2 August 2022, they can receive government benefits on 9 of those 26 weeks.

"Energiepreispauschale" Tax allowance for employees residing in Germany

Rising energy prices are worrying people all over the world. Many countries are taking measures to accommodate the population. For example, the lower incomes in the Netherlands and France are eligible for an energy surcharge resp. chèque energie, a bonus bollette applies in Italy and Belgium also applies a heating premium.

The German federal government has decided to grant all employees a premium of € 300, the so-called Energiepreispauschale. In contrast to the allowance in other countries, this allowance is processed by employers in Germany through their payroll administration.

Hiring local staff abroad - how does that work?

Are you an employer who is looking to hire, or who has already employed, a local salesperson or representative abroad? Then you might assume, quite understandably, that you can simply apply your own rules, because those are the ones you know.

However, this is not without risk. If your employees live and work in another country, or move to another country, you have to take into account the local rules of that country. And local rules are different in every country!

Interfisc, expert in cross-border payroll

Can we help you any further? Please contact us!

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