Employer costs and taxes on employee bonus

[NNabil]

H. All,

 

I have 30% ruling granted with my current employer and I want to quit for a new offer: working as a freelancer for a project with a customer against an average of 15000 per month - depending on working hours...

 

I am now trying to compare what option is better for me: create a BV and invoice this monthly amount to my customer or he adds me to his payroll as employee... maybe there are benefits in a BV, but because of some other details not mentioned here, I am now interested to know what will be my Gross and Net salary after deducting employer costs if he pays out 15000 monthly (remember that I can keep using the 30% ruling)

 

Also, since this is an average monthly amount, is there any better option like having a fixed wage equal to the minimum salary required for a highly skilled migrant in addition to a flexible monthly bonus? any limits in this bonus? will it be taxed less?

 

Thanks!!

[Norbert Bakker]

Hi nn_3_nn, 

 

If you are trying to compare both options please also take the following in consideration:

• doesn't your current contract have a non compete clause or a relationship clause?
• being an employee also provides full indemnity against general and professional liability for your work. As a Freelancer you are fully liable
• being an employee also provides an income during short and long time sickness and disability. As a freelancer you have to take an insurance for that
• are you already working for this customer through your current employer? If so,  I doubt if you even can continue these activities as a freelancer

 

 

Besides al the above:  with such a large monthly income or fee, would you rely on D.I.Y. with help of a forum, or would't it be much better tot contact fiscal and legal pro's? If you think pro's are expensive: an amateur can cost you much more! 

 

[NNabil]

Thanks a lot Norbert Bakker!

 

I think these are very straight forward and general questions... I prefer always to have some understanding before going to a pro, this will help me digest it and have a more fruitful discussion - not instruction (at the end, it may be boring if I occupy a pro for such basic questions :)

 

- What will be (more or less) my gross and net salary if the employer pays out 15000?

- Since this may be variable salary, I am thinking of having a fixed+variable salary/bonus. Is there a legal limit for variable salary in the NL?

- Are there other options to get paid the variable part (bonus)?

 

Thanks,

[Norbert Bakker]

3 uur geleden, NNabil zei:

at the end, it may be boring if I occupy a pro for such basic questions

Your  questions are actuallly far from basic, and the (possible) answers are quite complex. Furthermore the real questions are: are you asking the right questions, and do you know why? 

 

3 uur geleden, NNabil zei:

- What will be (more or less) my gross and net salary if the employer pays out 15000?

Gross 15K salary = Net 15 x (1-0,3) = +/- 10,5K

 

3 uur geleden, NNabil zei:

. Is there a legal limit for variable salary in the NL?

Only in certain branches, like financials: for financials there is a 20% bonuscap : the variable salary can not be more than 20% of the total salary 

 

3 uur geleden, NNabil zei:

Are there other options to get paid the variable part (bonus)?

 

No, and even more important: there is no fiscal gain to be found here whatsoever.  The only thing you actually do by raising the percentage of variable salary, is lower your own benefits like sickness and disability payment as an employee, unemployment wages and - if applicable - retirementbenefits 

[NNabil]

3 hours ago, Norbert Bakker said:

Gross 15K salary = Net 15 x (1-0,3) = +/- 10,5K

15K is not the gross but the total cost the employer is paying, so there should be some costs to deduct before coming to the gross salary. Do you know how much this is (+/-)

[Norbert Bakker]

19 uur geleden, NNabil zei:

Do you know how much this is (+/-)

 

I know how hard it is to give this in an estimate that actually makes sense. 

 

It depends on the actual branche the employer is registered in and whether there is a branchebased mandatory or company pension/retirement scheme and if you ride a company car and if employer pays 70 or 100% during sickness and whether you are also insured against WIA Gap en WIA Excess. 

 

Leaving al that possible benefits out of the equation, the extra costs for an employer in  - for example - the IT branche are roughly 15% of the gross salary up to the social security salarycap of € 58.311,-  But if you leave all those benefits out, it makes little or no sense....