Overview of Payroll in Belgium 2020

Overview of Payroll in Belgium 2020

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An overview of processing in Belgium

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 its important for employers to fully understand these requirements and the various types of filing.

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 employers 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.

The course includes:

Module One: 

  • Introduction to Belgium 
  • Start of employment 
  • Formalities for new employer in Belgium
  • Employment contract
    •  Language
    • Types of labour agreements / Content
    • General obligations of both parties
  • Working time and rest periods
  • Social documents

Module Two: 

  • Salary and Benefit
    • Gross wage cf. labour contract
    •  Bonuses / tips / commissions
    • Pay for overtime
    • Benefits in kind (voordelen in natura / avantages en nature)
    • Wages for public holidays / guaranteed pay for days of sickness / application Leave (sollicitatieverlof) / short term absence (klein verlet)
  • Wages paid for annual holidays
    • 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
  • Income tax
    • Scales of source income tax
    • Professional Withholding Tax
    • Tax free sums and reductions

Module Three

  • 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 

    Other means of training 

    Click here to attend this course virtually 

    Click here to attend this course in classroom 

    For further information contact us on 0203 751 1510 or training@globalpayrollassociation.com

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