Here's how the work expense rules will work in 2024

WKR goes from 3% to 1.92%. What does this mean?

You can help your employees get fit and vital via the work-related costs scheme (WKR). What can you offer untaxed reimbursement and what will change in 2024? Experts from company health network Zorg van de Zaak give an update.

"The working expenses scheme can help you keep your employees fit and vital," says Janine van de Geest, Business Partner Employability at company health network Zorg van de Zaak. That's why she regularly gives advice on this regulation. If employers have questions about the technical details, they can contact her colleague Josine van der Splinter. She is an expert on fiscal matters and knows exactly how to get the most out of the Working Costs Regulation (WKR).

Exemptions, nil valuations and free space

The WKR is a tax measure for business owners to give certain things untaxed reimbursement to their staff, Van der Splinter explains. "It means that you can buy services or products for your employees without having to pay tax on them."
The scheme consists of the targeted exemptions, nil valuations and the free room. Goods or services that fall under the targeted exemptions are always untaxed. Think of a laptop or travel expenses.

Handbook of Payroll Taxes

Chapter 22 of the Tax and Customs Administration's Payroll Tax Handbook explains what is covered. That manual also contains nil valuations. The tax authorities value these items at zero and therefore these goods or services are also always untaxed. These are specific items related to the workplace, such as coffee and tea in the office, work clothes or a public transport pass.

Free space

Then there is the free room. This is a certain percentage of the total wage bill. You can spend this amount freely on all kinds of things for your staff. In 2023 the free space on the taxable wage up to 400,000 euro is 3%, above that it is 1.18%.

"That 3% was a temporary increase because of inflation and high energy costs last year," Van der Splinter says. "In 2024, that percentage will change."

The free space over the total wage bill up to €400,000 will be 1.92% in 2024.

Keeping good records is essential, stresses the tax expert. After all, if you spend more than this amount untaxed, you have to pay as much as 80% tax on it.

In 2023 and 2024, the percentages in the 2 brackets of the WKR are as follows:

Fit and vital with the WKR

The WKR can help you keep your employees fit and vital in many ways, says Director of Employability and Sickness Absence Van de Geest.

"Sickness Absence is really expensive, the total of payroll costs, replacement and Occupational Health Service can cost between 300 and 400 euros per day per employee," she says. "So it's smart to investigate how to prevent it. Investing in preventive intervention pays off handsomely. Through the WKR, you can do that inexpensively."

Exemptions and the Occupational Health and Safety Act

Some items fall under the targeted exemptions or nil valuation, others fall in the free space. An example of a targeted exemption is the Periodic Occupational Health Examination (PAGO). The Occupational Health and Safety Act states that employers are obliged to offer their staff such an examination. The costs are therefore exempt from payroll tax.

"Generally speaking, matters arising from the Occupational Health and Safety Act fall under targeted exemptions," Van de Geest says. "These are measures to combat health and safety risks in the workplace that can reasonably be expected of the employer."

Nil valuations

Nil valuations include all kinds of items for the workplace. These could include, for example, ergonomic desks for the home office, a footstool for monitor work or safety shoes.

services such as a health check, coaching or career advice are not required by the Occupational Health and Safety Act. "These are also not exempt, but you can offer them via the free space," says Van der Geest. "It is wise to check per investment under which category of the WKR it falls. If you are in doubt, ask for preliminary consultations with the Tax Office."

Want to know more? Our website has a list of measures covered by the WKR.

What does that cost?

Additional preventive measures are more beneficial than you think, Van de Geest says. "It's normal to spend an average of 2,400 euros per employee," she says. "You can do a lot with that."

For example, a workplace assessment costs about 500 euros, a career pathway about 1,400 euros and a pathway with a company social worker about 550 euros. "This kind of investment delivers a lot: less Sickness Absence, happy employees and more productivity."

Make a plan

In any case, the experts at Zorg van de zaak recommend drawing up an occupational health and safety plan. You do that based on your health and safety policy. "This helps you think in advance about the health risks for the employees in your company. Then inventory the possibilities for preventive measures and the costs. That way you avoid surprises, as they cost unnecessary money."

WKR free space calculation module

Wondering how much free space is still available for 2023? And what the free space will be for 2024? Fill out this form:

Source: MKB servicedesk