Explanatory Notes to Differentiated Return to Work Fund Contribution
Around this time, you will receive the 2020 Differentiated Return to Work Fund Contribution Decision (dated 29 November 2019). If the contribution is set incorrectly, this can have substantial financial consequences. Why?
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For large companies (those with a wage bill of more than EUR 3,370,000), the contribution varies between 0.32% and 5.12% (with the exception of temporary employment agencies). In short, the contribution depends on the claims paid, i.e. the allocated sickness and disability benefits of present or former employees. The contribution is levied on the entire wage bill and the allocation of benefits can continue for up to 10 years. The correctness of the contribution can therefore have considerable financial importance.
Checking the contribution decision
Experience has shown that claims are not always allocated correctly. We therefore recommend that you check the contribution decision and any allocated claims carefully. If necessary, an objection to the decision must be made within 6 weeks.
Own-risk bearer status
An alternative is available. In addition to the public insurance taken out with UWV, large employers can also opt for ‘own-risk bearer status’. They can do so for both the Return to Work (Partially Disabled Persons) Scheme (WGA) and the Sickness Benefits Act. This does mean that an own-risk bearer for WGA purposes has the obligation to place this risk with an insurer. Under certain circumstances, this can yield substantial savings. If you want to know whether this also applies to you, we will be happy to discuss this with you.
If you are a large employer and would like to know whether checking your contribution decision could be useful, please feel free to contact one of our experts from our Employment & Benefits team. They will be happy to assist you in checking the decision and lodging any objections, and can advise you on whether the own-risk status could benefit your company.
For more general information, please refer to the explanatory notes on the UWV website.
Hans van RuitenPartner Tax adviser
Hans van Ruiten, tax adviser, is a member of the Employment & Benefits practice group in our Rotterdam office. He has a wide expertise (over 30 years of experience) in employment taxation matters. An important part of his practice is regarding equity incentives.T: +31 10 224 64 18 E: email@example.com