InsightsApril 6, 2020
The government supports entrepreneurs by continuing to pay salaries (NOW)
The government supports entrepreneurs by continuing to pay salaries.
It’s clear that the Corona crisis has a lot of impact. Entrepreneurs who have employees are feeling a big responsibility towards their staff. One of the main concerns is the insecurity about being able to pay the salaries of their staff.
From Monday the 6th of April, these employers can ask the UWV for a reimbursement. This arrangement is called the NOW-arrangement. It is meant for entrepreneurs who have a loss of revenue due to the corona crisis, and who will get in trouble paying the labour costs.
What are the conditions?
The most important conditions are:
- You have to have a loss of revenue of at least 20 percent;
- You can’t fire any employees during the period of the reimbursement;
- You keep on paying 100 percent of the salaries;
- You have to send in the payroll tax return on time.
Click here for all of the conditions.
How much is the reimbursement?
The reimbursement of the wage and salary costs is related to the percentage of the revenue loss. The reimbursement has a maximum of 90 percent of the revenue loss. When you have no income at all, you will get 90% of the wage and salary costs. When your revenue has been cut in half, you will get a compensation of 45% (90% of 50).
How do I determine my revenue loss?
You can compare your (estimated) revenue in the period of March-April-May 2020 with the total revenue of 2019, divided by four.
Revenue in 2019: 240.000
Quarterly revenue 2019: 60.000
Revenue March-April-May: 30.000
The loss of revenue is 50 percent. The reimbursement is 45 percent.
The wage and salary costs
The payroll tax returns are being used to determine the wage and salary costs. That’s why it’s very important for this arrangement that you keep on sending in the payroll tax return. (When you can’t afford this, it’s very easy to apply for a payment delay) The UWV uses the SV-wages and adds 30 percent to them. This raise is for employer’s contribution like holiday allowance, pension premiums and employer’s premiums.
You can do the application through the UWV. They are striving to pay an advance to the employer within 2 to 4 weeks.
This emergency measure will be held up to and including May. Before the 1st of June 2020 it will be decided if and under which conditions this measure has to be renewed.