Payroll Calculation I

No previous knowledge needed.

This seminar gives participants a practical overview of calculation of salaries. Participants will deepen their knowledge through exercises.

Introduction

Compulsory deductions on salaries: taxes & social security
Other deductions

Indexation of salaries

Taxes

• General aspects
• Double-tax treaties with bordering countries
  • Germany, Belgium, France
• The Luxembourg tax system
  • Tax brackets
  • Tax schedules (Barèmes de l'impôt)
• Taxes on salaries
  • Tax classes 2008-2017
  • Tax classes since 2018 (tax reform)
• Taxation of married couples
  • residents
  • non-residents
• Tax cards
• Mentions on Tax card
  • Abattement Conjoint (AC)
  • Frais de déplacement (FD)
  • Dépenses spéciales (DS)
  • Charges extraordinaires (CE)
  • Abattement pour mobilité durable (AMD)
  • Crédit d'impôt monoparental (CIM)
  • Calcul du crédit d'impôt pour salariés (CIS)
  • Calcul du crédit d'impôt salaire social minimum (CISSM)
• Obligations by the employer in relation to salary tax

Social Security

Minimum social salary
Social security theshold

Compulsory contributions to social security (employee & employer contributions)

• Caisse Nationale de Santé (CNS)
• Mutualité des Employeurs
• Caisse Nationale d’Assurance Pension (CNAP)
• Caisse pour l'avenir des enfants
• Assurance-Accidents
• Assurance-Dépendance
• Fonds National de l’emploi

Special Tax treatment for highly qualified employees (impatriates)

• Conditions
• Recurring and non-recurring expenses
• Advantages and pitfalls for employers

Split salaries

Luxembourg/Luxembourg (multiple employers in Luxembourg)
Luxembourg/Other country (special case of frontier worker working more than 25% in country of residence)

Practical examples and exercices

• Social contributions: determining the employee share
• Understand and use tax schedules
• Know how to determine the tax to be applied to a salary
• Calculate a gross-net salary (different salary levels, different tax classes)
• Be aware of the problems of cross-border employees working outside Luxembourg and the possible impact on taxation and social security.

Interactive course with many examples

Each participant will receive a certificate of attendance.

We guarantee that the seminar will take place even with a small number of participants.

Number of participants is limited to 6.
Interactive and practical seminar.