How do I process a retroactive pension payment to a Pensioner?

  • Modified on: Thu, 7 Feb, 2019 at 9:36 AM

That depends on the amount of the amount that needs to be paid and other factors and circumstances.

If the retroactive payment only concerns a few months, you can create a wage code 'Retroactive payment' for this payment, and enter the subsequent payment just for once in this wage code. In that case it is important that you duplicate the correct existing wage code for this Retroactive payment wage code. What you can do also in such a case is simply to process these months per month individually.

If the retroactive payment concerns several months or even years, it may be advisable to perhaps pay part of it in old years. This can fiscally be more favorable for the Pensioner (read: less wage tax). A disadvantage for the employer in this case is that a Revised Verzamelloonstaat will have to be filed and this adjustment must also be correctly financially accounted for in the past years.

If you have a doubt, let us know. We are happy to think along with you for the best solution.

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