Tax form 281 for income year 2018
Shortly, Pro-Pay will contact its clients with regard to the tax form ‘281’ concerning employee earnings. We will ask to provide information with regard to the reimbursement of expenses and additional benefits awarded in the 2018 earnings year. It is important to complete these forms correctly and in due time to avoid possible fines or an increase in taxes.
Each year, Pro-Pay prepares the tax forms ‘281’ for its clients. This form states earnings that are subject to withholding tax. The employer provides this form to its employees, that use the details on the form to file their tax returns. They should also retain the form with regard to a potential tax inspection.
There are different types of tax forms ‘281’. The most common ones are:
- Form 281.10: a form that states the earnings of people receiving wages or salaries.
- Form 281.20: a form that states the remunerations of company directors.
We are already aware of the payments that have been processed through the payroll. At this point, what we still require is information on all relevant payments clients have made to their employees that have not been processed via the payroll.
This may concern:
1. Reimbursement of expenses proper to the employer outside of the payroll
It is important for Pro-Pay to know how the amount of these costs has been determined: (i) based on supporting items like invoices, receipts, car park tickets, …, (ii) based on ‘reasonable criteria’ (ernstige normen/critères sérieux), or (iii) in any other way.
2. Additional benefits awarded to employees
Examples are advantages in kind (loan, housing…), stock options, third-party agreement for public transport commuting,…
The deadline for filing the tax forms with the authorities and providing them to the employees is February 28, 2019. It is of paramount importance for the employer to ensure that the tax forms 281 are filled out correctly and completely, as well as filed on time. If not, the tax authorities may impose a fine of € 50 to € 1.250 and/or a tax increase of 10% to 50%.
Furthermore, costs that are not disclosed on the tax forms 281 may be refused by the tax authorities to be deducted by the employer as business expenses.
