From 1 January 2027, some UWV benefits paid through an employer will no longer qualify for the employment tax credit. Payroll must record the benefit separately from current wages. This applies even when both payments go out together. Affected employees will usually receive less net pay. The employer’s direct wage cost does not change.
Why this matters
Payroll must record the qualifying benefit under a separate income relationship, or IKV. Current wages use the white wage-tax table. The benefit uses the green table. Payroll may still combine both amounts for wage-tax withholding. The rule can affect WAO, WAZ, Wajong, WIA, certain Sickness Benefits and Supplementary Benefits Act payments. It also applies to own-risk employers. Each affected employee needs a payroll check and a clear explanation on the payslip.
Example
A ten-person business pays an employee’s partial WGA benefit through monthly payroll. The employee’s hours, gross wage and benefit entitlement stay the same. In the first 2027 payroll run, the payroll bureau records the benefit under a separate IKV. The employment tax credit no longer applies. The employee receives less net pay and calls the employer. A message sent beforehand explains the new tax treatment. Without it, the employee may think the payroll file is wrong.
XTROVERSO tips
- Find payments that may be affected. Check whether any employee receives a UWV benefit or Supplementary Benefits Act payment through payroll. Record the benefit type, payment route and payroll code.
- Assign one owner. Choose who gathers information from the absence adviser, payroll provider and internal records. That person should keep the payroll file complete.
- Check the 2027 payroll setup. Confirm that the software can create a separate IKV and apply the right wage-tax tables. Ask the payroll provider to confirm the setup in writing.
- Prepare the employee message. Explain that gross wage and benefit entitlement may stay the same while the tax credit changes. Do not promise an exact net amount before the final calculation.
- Keep the payroll record. Save the benefit classification, software settings, provider confirmation and employee message. Compare the first 2027 payslip with that file.
Want us to check your payroll process and employee message before the 2027 change?
The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Belastingdienst — Nieuwsbrief Loonheffingen 2027
- Belastingdienst — Nieuwsbrief Loonheffingen
- UWV — Arbeidskorting over uitkering stopt per 1 januari 2027
- Hoge Raad — ECLI:NL:HR:2024:1657
- Rijksoverheid — Kabinet verandert regels arbeidskorting
- UWV — Werkgever machtigen voor betaling van een uitkering
- Belastingdienst — Herberekeningsmethode bij nabetalingen
- Taxence — Nieuwsbrief Loonheffingen 2027 gepubliceerd
