Tax form 281 for income year 2017
Each year, Pro-Pay prepares the tax forms ‘281’ for clients. The tax form states earnings from which withholding taxes are deducted. The employer is required to issue these forms to its employees. The employees use the details on the form to file their tax returns and must retain the form with a view to a tax inspection.
There are different types of tax forms ‘281’. The most common are:
- Form 281.10: a form stating the earnings of persons who receive wages or salaries.
- Form 281.20: a form that states the remunerations of company directors.
We already have a view of all payments processed through the payroll. In a short while, clients will receive an e-mail from us in which we ask to inform us of any relevant payments that clients have made to their employees that have not yet been processed via the payroll.
This can concern:
- Reimbursement out of the payroll of employer-specific expenses. It is important for Pro-Pay to know how the amount of these costs have 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 some other way.
- Additional benefits awarded to employees. examples of such benefits 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 28 February 2018.
It is of paramount importance for the employer to ensure that the tax forms 281 are filled in correctly and completely and are filed on time. Otherwise the tax authorities may impose a fine of 50 euro to 1.250 euro and/or a tax increase of 10% to 50%.
Furthermore, if the costs are not disclosed on the tax forms 281, the tax authorities may also refuse to allow the employer to deduct them as business expenses.
