Year-End Payroll Audit For Employees With The 30% Ruling

Author: LIMES international

As the year-end approaches, it is time for those responsible for payroll administration to conduct a year-end review of payroll processing. At the same time, preparations for the new year must be made.

For employers:

With employees benefiting from the 30% ruling, this tax facility becomes increasingly important year by year. Relevant laws and regulations have changed considerably in recent years, with more expected changes in the future.

1. Salary threshold

When the 30% ruling is applied in the payroll administration, employers must ensure throughout the (calendar) year that the salary threshold (the so-called "continuity test") is met. The salary threshold is indexed annually. Whether the salary threshold is met can be verified by the Dutch Tax Authorities. If the threshold is no longer met, the 30% ruling will end, potentially retroactively from the beginning of that year. It is not always easy to determine if the salary