[However, the tax exemption rule is not without risk. Changes in income later in the year, or a year-end bonus may result in surpassing this new wage limit after all and then the exemption should not have been applied. This can result in back taxes of over Nafl 500,- in some cases.]

Problem

According to the tax table wage tax should be deducted, but no wage tax is computed. During processing a message appears saying: "Exempted for wage tax"

Cause
If taxable yearly income, after deduction of "verwervingskosten" and the employee part of the AOV premium is below a set wage limit (NAf. 27,106.56 in 2025), then the employee is exempted from paying wage tax.

If for example in a month the base for the income tax is below 1/12 of the yearly limit, then the employee is exempted from payroll tax and you will see a warning during processing.

However, the tax exemption rule is not without risk. Changes in income later in the year, or a year-end bonus may result in surpassing this new wage limit after all and then the exemption should not have been applied. This can result in back taxes of over Nafl 500,- in some cases.

Solution
To disable this tax exemption rule you may place a check-mark after "Disable tax exemption" on the "Taxes" tab of the employee. Then reprocess the employee for that period.