For modern workers
'to do or not to do'?
Payroll tax credit is a discount on your payroll tax to be paid. If you do apply payroll tax credit, you therefore pay less tax and you have more net wages that you will receive into your account.
Sounds almost too good to be true, free discount. You can only apply the payroll tax credit once per period (period) per employment contract. If you have more than one employment contract, you will have to choose where to apply the discount. This is the case if you have two jobs or receive a benefit or state pension. We recommend that you apply the tax credit to the employment where you earn the most.
Multiple employment contracts?
If you do not apply the payroll tax credit, you will receive less net transfer. By applying the payroll tax credit at most once, we prevent you from getting too much discount and having to repay later, but in most situations you still pay a little too much. Afterwards, this right will be extended to your income tax return and you will simply get the overpaid wage tax back.
You can easily change the payroll tax credit in your personal account, under benefits. You do this when you have another employment contract where you started earning more (turn it off with us and on there) or less (turn it off there and on with us). If you have passed on a change, it will take effect from the next period that we pay.
Are you interested?
Would you like to discuss your specific situation? Then contact us without obligation. We are happy to help you become your own boss in a way that suits you.