Overview

Employers are obliged to operate a form of PAYE known as Professional Withholding Tax (PWT) but at the same time should be aware that this may not fully cover the employee’s tax liability. The tax is also based on the employee’s personal circumstances since there are three different Bareme’s operated.

The Belgian social security also requires a range of social documents to be kept and failure to do so can incur penalties, plus there are specific documents needed on termination so it’s important for employers to fully understand these requirements and the various types of filing.

Who is this course for?

It is aimed at those who are looking to start running a payroll in Belgium for their organisation, or those who are utilising the services of a service provider who want a better understanding of the setup requirements so they are better able to support their business and ensure compliance in their organisation.

What will you achieve?

Having attended this course delegates will have confidence that they understand the fundamentals of payroll processing in Belgium, are clear about employer obligations including those for Belgian residents and non-residents, know what they need to do on a periodic and annual basis, can answer employee queries and check payslips.

Even if payrolls are outsourced it is still the employer’s responsibility to ensure all obligations are met and that income tax and social security are correctly processed. This course not only gives you the information you need to be compliant but also ensures you know exactly what information should be given to a payroll provider and the various tasks they should be completing on your behalf.

What will be covered?

Introduction to Belgium

• Country overview
• Business culture

Start of Employment

• General employment law principles
• Formalities for new employer in Belgium
• DIMONA / LIMOSA declarations

Employment Contract

• Language
• Types of labour agreements (blue-collar, white-collar, fixed term, part-time, students, agency workers, etc)
• Content
• General obligations of both parties
• Working time and rest periods
• Personnel register
• Payslips
• Individual accounts
• Work regulations

Salary and Benefit

• How to determine the basic salary package?
• Minimum wage
• mandatory salary components at sectoral level
• mandatory salary components at the national level
• additional non-mandatory benefits
• Overview of most common fringe benefits incl. their fiscal and social security treatment (e.g. meal vouchers, company car, cost allowances and benefits in kind)
• Payroll processing

Wages paid for Annual Leave

• Single holiday pay = normal wage an employee receives for taking a legal holiday considered as wage
• Double holiday pay = additional holiday allowance
• NOT considered as protected wage cf. remuneration act

Social Security

• Employees contributions
• Employers contributions
• Exemptions and reductions
• Payment of social security contributions

Source Income Tax 

• Scales of source income tax
• Professional Withholding Tax
• Tax-free sums and reductions

Types of Leave during employment

• Annual holiday
• Public holidays
• Illness
• Maternity leave and protection § Paternity leave
• Short justified absences (Klein Verlet / Absence Justifiée) § Other

Termination of Employment 

• Termination in mutual agreement
• Force majeure
• Formalities
• Notice Period
• Indemnity in lieu of notice
• Dismissal for serious cause
• Protected employees
• Statutory termination entitlements
• unreasonable dismissal