Since 2021, the conditions for granting telework allowances are the same for the tax authorities and the NSSO. If you meet these conditions, the telework allowance is therefore exempt from social security contributions and taxes.
When we talk about telework allowance, we mean structural and regular telework
If your employees telework structurally and regularly, the tax authorities and the NSSO accept that you grant them a flat-rate office allowance of up to 160.99 euros per month. This allowance is exempt from withholding tax and social security contributions.
The flat-rate allowance covers all office costs. Office costs are expenses that an employer must also incur in the office to ensure that work can be performed properly. This includes the following costs:
- Use of an office space at the employee's home (including rent and any depreciation of the space)
- Printer and computer materials (paper, USB stick, mouse pad, ink, etc.)
- Office supplies (notebook, ballpoint pens, etc.)
- Basic utilities such as water, electricity, and heating
- Maintenance costs
- Insurance costs
- Coffee, water, and soft drinks
- Property tax
Paying less or more
You can grant a lower amount than the maximum amount. You could also grant a higher amount. However, if you pay your employees more than the maximum flat-rate amount each month, you must be able to show that it concerns actual costs.
If you do not provide this proof, the portion that exceeds the flat-rate amount will be considered salary. Withholding tax and NSSO contributions will then need to be paid on this portion.
Structural and regular telework
Regular telework refers to employees who regularly, frequently, and normally work from home. Home work that occurs occasionally or sporadically does not fall under this and is not eligible for the flat-rate telework allowance.
Example: an employee who only works three hours a week from home is not a structural and regular teleworker.
The tax authorities and the NSSO consider telework to be structural and regular if your employees work from home on a monthly basis the equivalent of one working day per week.
This can be one full day per week, or a few hours per day. Teleworking for a full week per month is also sufficient. If that average is not met, then your employee is not entitled to a telework allowance that is exempt from NSSO contributions and withholding tax for that month.
However, the interpretation of this concept continues to pose problems. For example, what about an employee who works from home one day a week if that day only counts for three hours?
Although that is the employee's normal working arrangement, the tax authorities and the NSSO believe that the equivalent of one day of telework per week has not been achieved. Since the employee only works three hours a week from home, it does not constitute structural and regular telework.
No telework due to annual vacation?
The annual vacation does not affect the assessment of the condition of structural and regular home work. You may continue to pay the flat-rate telework allowance during your employee's annual vacation.
Office materials and internet
The condition of regular and structural telework only applies to the granting of the telework allowance, which covers a range of office costs mentioned above. It does not apply to:
- The flat-rate allowance for the use of the employee's private PC and private internet connection
- The flat-rate allowance for the use of their own second screen and their own printer/scanner
- The provision of office furniture and/or computer materials by the employer
In those cases, only the condition of regular telework applies.
Therefore, an employee who teleworks regularly but does not meet the condition of structural and regular telework can be granted an exempt allowance of 20 euros for the months in which they use their private internet subscription.
Read all about the reimbursement of costs for office materials: Structural telework > What are the costs for the employer?
And the provision of office materials for private use?
The NSSO and the tax authorities accept that you reimburse certain office materials to your employee. Under certain conditions, the reimbursement is not considered salary. In that case, there are also no withholding tax or NSSO contributions due.
But be careful, the reimbursement is only exempt if it covers the costs necessary to perform the work properly under normal circumstances. Materials provided for purely private purposes are considered salary. A benefit in kind will then be calculated.
What does Securex do for you?
Securex can guide you in drafting your telework policy, including the allowance. Our consulting team can advise you on the most suitable solution for your company. You can contact them via consultinglegal@securex.be.
Do you want to increase the telework allowance or grant the maximum allowance? Contact your Securex Client Advisor at myHR@securex.be. They will take care of it.
More information can be found on Lex4You:
- Theme 'Recruiting and concluding labour contracts' > Structural telework
- Theme 'Remuneration' > Telework allowances
Also discover our telework packages, with various models of telework policies.
Source
- NSSO instructions
- Circ. 2024/C/2, 08.01.2024
