About employee categories in Aruba
What are categories
In Celery, category means: part of a classification.
By this we mean that employees are classified into different categories in order to be able to properly organize taxes and premiums, among other things.
The various categories are listed below.
Standard
This is actually the most common category.
All standard taxes and premiums apply to a standard employee.
Only when an exception applies to this, you could choose one of the following categories.
Pensioner
This category only applies on pension payments paid by a pension insurance company or in case of an in-house retirement pensionplan.
All standard taxes and premiums, except for the SVB ZV/OV premiums, apply to a pensioner. In case AOV/AWW premium is applicable, the AOV-Gliding Scale is applied automatically. For a pensioner with a foreign tax liability certain exemptions may apply, which you have to set yourself.
If you choose this employee category, Celery does not ask for working hours per day and working days per week. The term gross salary has also been replaced by gross pension and the pay slip has been renamed to pension specification.
This category does not apply to wages from current employment, even though the employee has reached the pensionable age. For wages from current employment category 'standard' should be selected.
Ex-patriate with tax ruling (up to and including 2017, September)
This concerns an employee for whom the expat tax status (ruling) has been applied for and granted.
In general, a net salary is agreed with the expatriate, the acquisition costs are not applicable and in addition to the social security premiums, also Wage Tax is fully contributed by the employer. In this case, the net salary does not have to be grossed up and therefore Wage Tax and premiums are calculated based on the net salary. There are also certain exemptions for tax-free allowances.
Ex-patriate with tax ruling (from 2017, Oktober)
This concerns an employee for whom the expat tax status (ruling) has been applied for and granted.
Certain fiscal advantages apply to an expatriate's salary.
In general, a net salary is agreed with the expatriate, the acquisition costs are not applicable and in addition to the social security premiums, also Wage Tax is fully contributed by the employer. In this case, the net salary does not have to be grossed up and therefore Wage Tax and premiums are calculated based on the net salary. There are also certain exemptions for taxed fringe benefits and tax-free allowances.
This "new" scheme differs from the "old" scheme in particular in two respects:
- the one-time gross up of the Wage Tax is no longer applicable and
- an exemption for taxed fringe benefits is applicable.
Intern
This category is to be selected for a intern, when it concerns a mandatory internship for school/studies.
All standard taxes and premiums, except for SVB ZV/OV premiums apply to a intern.
This category applies to internship allowances that are lower than the applicable minimum wage. For internship allowances higher than the applicable minimum wage category 'standard' should be selected.
For an intern from abroad exemptions for social premiums may apply, which you have to set yourself.
Proforma
This category can be used to draw up gross / net wage calculations and to make wage costs transparent.
All standard taxes and premiums of the sector chosen apply to a proforma employee. However, this employee will not be included in payroll processing. This category is often used to make gross/net wage calculations and provide information on wage costs.