Even more pain! NOW 1 final calculations: fines lead to higher debt
The cabinet sprinkles support measures to ease the pain of the lockdowns. The stories are known from entrepreneurs who did not qualify. For those who do qualify, the measures have their limitations. Allowances are certainly not fully covering. In addition, they are advances from which excess amounts received must be repaid. Whether or not with a fine. That will be a task with an empty piggy bank, piling debts and an uncertain turnover in the near future. It paints a not-so-pretty picture of the future.
NOW 1 final calculation
One of the measures is known as the NOW, the Temporary Emergency Bridging Measure for Employment. The NOW-1 advances have been paid in 2020 and the final calculations must be established before March 23, 2021. Blood flows from there. This is especially true if a lower wage bill has arisen. The entrepreneur understands that with a lower wage bill, money must be paid back. What entrepreneurs do not understand is that there is a fine attached to this. A detailed calculation example:
It becomes dramatic if there has been a commercial dismissal. In the above example, a wage bill of €2,000 can be reduced by more than €10,530 as a result of commercial dismissal! result in a fine.
If the lower wage bill has arisen through no fault of the entrepreneur, voluntary dismissal or sick leave, you will be financially punished for this. Prudential layoffs filed because there were no options to retain staff can now cost a lot of money in an advancing financial drama.
Objection
Objecting to the decision of the UWV is of little consequence. In response to objections, the UWV says that it cannot do anything about this. It is the implementation of the laws and regulations. Customization is not possible. This cannot be explained to entrepreneurs who are at a loss.
Mountain of debt
The leniency of shifting tax debts to the future with a long term for repayment is nice. But let's face it, paying back debts related to the above fines is harsh. These are companies in sectors that have already been knocked out by all the measures.
An additional problem for companies with increasing debt is that the innovation strength is declining. The money is not for that, it has to pay off the debts and the interest. The company is falling behind. In other words, companies are being eroded. That is the last thing we want with the job engine of the Netherlands. In any case, the government can take action on debts that arise as a result of the penalty policy in the NOW 1 scheme, which has been abolished.
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