What is free fiscal space in SAP PY-NL - The Netherlands?

SAP Term: free fiscal space

• Component: PY-NL

• Component Name: The Netherlands

• Description: A percentage of the total tax remunerations of all employees. This percentage is the upper limit that employers can use to pay tax free compensations to employees.

Smart SAP Assistant

• Key Concepts: 
  Free fiscal space is a concept used in the Netherlands payroll component of SAP. It is a feature that allows employers to set aside a certain amount of money for their employees’ tax-free benefits. This money is not subject to taxation and can be used to provide additional benefits to employees, such as health insurance, pension contributions, or other non-wage benefits. 
  
  How to use it: 
  In order to use free fiscal space, employers must first set aside a certain amount of money from their payroll budget. This money will then be used to provide tax-free benefits to employees. Employers can also choose to use the free fiscal space for other purposes, such as providing additional training or development opportunities for their employees. 
  
  Tips & Tricks: 
  When setting aside money for free fiscal space, employers should ensure that they are not exceeding the maximum amount allowed by law. Additionally, employers should keep track of how much money they have set aside for free fiscal space and how much they have used so far. This will help them ensure that they are not overspending on tax-free benefits for their employees. 
  
  Related Information: 
  The Netherlands payroll component of SAP also includes other features such as wage tax calculation and social security contributions. Employers should familiarize themselves with these features in order to ensure that they are compliant with local laws and regulations. Additionally, employers should consult with a tax advisor or accountant in order to ensure that they are taking full advantage of the free fiscal space available to them.