If a child cooperates in the parent(s)' business, there may be a real or fictitious employment relationship. A real employment relationship exists if the child works under the same conditions of employment as other employees. In that case, the normal payroll tax rules apply. For fictitious employment, you may apply a simplified scheme under certain conditions. What is the situation?<\/p>\n
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Fictitious employment Simplified scheme Time of withholding If you do not withhold wage tax\/ national insurance contributions from the wages of the assisting child, the unwithheld wage tax is a benefit that you must add to the child's wages.<\/p>\n Conditions of simplified scheme Applying wage tax credit Permission from tax authorities Valuation of lodging, meals and clothing For lodging and meals, you may also use the following standard amounts in both situations:<\/p>\n If you determine the value of the benefits in kind using the standard amounts and then arrive at a wage that is at least 30% lower than the usual wage, then set the wage at 70% of the usual wage.<\/p>\n Own contribution Pocket money Example For the fictitious employment of collaborating children, you may apply a simplified scheme under certain conditions. What about this?<\/p>","protected":false},"author":2,"featured_media":787,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actueel"],"yoast_head":"\n
<\/strong>Fictitious employment exists if the child is at least 15 years old and the family relationship between parent and child predominates. The conditions of employment are then not the same as for other employees. This is because there is then no employer authority. The following applies to the fictitious employment for the assisting child:<\/p>\n\n
<\/strong>For cooperating children in fictitious employment, you may apply a simplified scheme for withholding payroll tax and healthcare insurance under certain conditions. This scheme entails the following:<\/p>\n\n
<\/strong>For cooperating children, you only have to calculate and remit payroll taxes once a year. The notional time of deduction is the 1st working day of the following calendar year. The situation (such as the age of the child) on that date is therefore decisive for the calculation of payroll taxes. However, you must use the previous year's rates.<\/p>\n
<\/strong>You may apply the simplified scheme for cooperating children under the following conditions:<\/p>\n\n
<\/strong>You must always apply the wage tax credit when using the simplified scheme. Does the child have another employment or benefit at the same time where it has the wage tax credit applied? If so, you do not meet all the conditions and may not use the simplified scheme.<\/p>\n
<\/strong>If you want to apply the simplified scheme, you must request permission from the Inland Revenue. If you have not requested such permission or if all conditions are not met, all normal administrative obligations apply.<\/p>\n
<\/strong>Special rules apply to the valuation of accommodation, meals and clothing that cooperating children receive from their parents. You count the invoice value or fair market value of these benefits in kind as wages if:<\/p>\n\n
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<\/strong>Does the child pay a personal contribution for benefits in kind from net wages? For example, boarding fees, housing fees and\/or clothing fees? Then you may deduct this from the valuation amounts. The amount of the valuation may not fall below \u20ac0.<\/p>\n
<\/strong>Does the child receive pocket money? Then you must include it in wages to the extent that it is more than what the child would receive if he or she did not cooperate in the business.<\/p>\n
<\/strong>You have set the wages of the collaborating child at \u20ac900. In addition, you provide the collaborating child with 30 meals with an invoice value of \u20ac10 per meal. Another employee receives \u20ac1,700 for the same work. If you use the standard amount (30 x \u20ac3.95 = \u20ac118.50) for the 30 meals you provide, you arrive at a wage of \u20ac1,018.50 for the cooperating child. As this is more than 30% lower than the usual wage, you set the wage of the cooperating child at 70% of the usual wage and thus \u20ac1,190.<\/p>","protected":false},"excerpt":{"rendered":"