What does payroll tax credit mean?
Tax credits are tax discounts. This means you have to pay less tax. If you work as an employee, your employer takes into account the general tax credit and the employed person's tax credit. We call these discounts the payroll tax credit. As a result, you pay less payroll tax and you receive more pay.
How does the payroll tax credit work?
If you work, you are entitled to a discount on your tax. You request this discount from your employer or benefits agency. He then pays less tax, and you therefore receive more (netto) wages. You state this when you register.
Do you work for more than 1 employer at the same time? Or do you have benefits and a job at the same time? Then request the payroll tax credit from 1 employer. In general, you only pay the payroll tax credit at the employer (or the benefit) where you earn the most, since you can only apply this discount to 1 employer. If you apply for payroll tax credit with every employer, you will get too much discount on your tax. You will probably have to pay this back to the tax authorities afterwards.
Do you work for several employers in succession in 1 year? Then you can request the payroll tax credit from any employer.
Can I change the payroll tax credit interim?
Yes, if you want to change the payroll tax credit, please contact our support team.