Belgium has one of the highest taxation rates within the EU and a complicated Belgian Payroll system. If you don’t speak the language or you work for a foreign company then it can be difficult to determine all the specialised local taxations and national taxes in relation to Belgian Payroll.
The Government of Belgium will also hold any employer liable for any mistakes made in the Belgian Payroll administration, this has resulted is many organisations finding that they can reduce costs and stress levels while improving their competitiveness by outsourcing their Belgian payroll needs.
Belgian Payroll Compliance
In order to remain compliant, several aspects must be taken into account while the legislations regulations must be followed. In order to work legally within Belgian borders, you must first register with the Belgian tax office. Completing a registration with the NSSO must follow, also known as the National Social Security Office, before creating an employment contract, must follow this.
If it is applicable, an application must be sent to the ‘Special Expatriation Status’ department. Payslips must be calculated accordingly with the relevant wage amounts in order to avoid fines and investigations. However, to avoid the stresses and time consuming tasks Belgian Payroll and administration brings, you can outsource your payroll needs to a Belgian payroll provider. They can calculate the wage slips professionally while providing advice around the available tax-free allowance, if allowable. They will also submit all wage tax returns as necessary along side relevant National Insurance (NI), corresponding with all involved parties. In terms of annual accounts, administration and year-end statements, the payroll provider will also deal with all the donkeywork, so you don’t have to! Furthermore, the Belgian payroll provider will create a payment schedule for wage tax, net wages and NI paired with personal income tax returns.
Belgian Payroll packages can almost always be tailored to your own specific needs and specifications, saving you a substantial amount of money and time. Plus, the less time you spend worrying about your payroll the more time you have for the things you enjoying doing outside work in your own time.