Companies with employees in the EU are facing many new changes in 2020. Along with Brexit and the associated changes with the UK leaving the EU in October, there are several payroll and compliance-related changes taking place beginning in January. Here are just a few of the upcoming changes to watch as you start planning for payroll compliance in 2020:
EU Posted Workers Directive
If you have employees being sent to work in other EU states outside their home country, they will now be entitled to new benefits. They will now be required to have equal pay as local workers for equal work, as well as travel, board, and lodging expenses. After 12 months, posted workers are entitled to mandatory working conditions of the host country (benefits, holiday pay, etc.) except for pension and termination contracts specific to that country. If you are currently moving employees around the EU, it is important to ensure they are receiving the right benefits based on the country they are working in.
Netherlands – Changes to Tax Plan
What is known as the “2020 Tax Plan” package has been proposed to go into effect January 1, 2020 instead of January 2021, with some changes to payroll taxes. The top tier tax rate will be reduced from 51.75% to 49.5%, so companies must make adjustments for employees being paid in the Netherlands beginning in January to avoid compliance fines or penalties.
GDPR Regulations and Compliance
GDPR has been in effect for more than a year, but as new regulations are created in different countries, ensuring you are keeping up with GDPR compliance is vital to avoid fines or penalties. The EU has been harsh with large and small companies operating in the EU, imposing fines and requesting audits. The EU has authority to stop business activities if your company is not compliant with GDPR, so ensuring compliance should be a priority going into 2020.
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