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As the New Year is approaching, it is a good moment to analyze the current cross-border employments within your company and verify if all formalities are still in order. With cross-border employment we refer both to employees traveling within the EEA, Switzerland and UK as to the classic frontier workers.
Cross-border employment comes with several administrative formalities and missing any formalities could lead to unintended consequences. So get started with the checklist and cross off all formalities!
Travel pattern and residence
The travel pattern and the residence of the employee are two important elements to check in cross-border employment as this will trigger several potential tax and social security obligations.
Therefore, the first step is to correctly track the travel pattern of your employees. If you would like to have information about EY’s tracking tool, contact us!
A1 certificate
An A1 certificate is a document that indicates which Member State is competent for social security and proves as an exemption to pay social security contributions in the other Member States where the employee works.
The benefit of having an A1 certificate upfront is that you can avoid questions from the Belgian social security authorities. Furthermore, this will also ensure certainty concerning the applicable social security and avoiding possible retroactive corrections, which are time consuming and costly.
Limosa notification
A Limosa notification is required for each employee working in Belgium subject to foreign social security. A Limosa notification is valid for a maximum of two years.
Frontier workers - Teleworking
Frontier workers who are teleworking from home require more attention. For employees benefiting from the Framework Agreement for Telework, a regular check on the working pattern and additional professional activities is even more important. The formalities concerning Telework have to be completed in due time, since a retroactive correction is only possible for a limited period of 3 months.
EY’s Belgian cross-border employment checklist:
1. Travel Pattern & Residence
☐ Track the travel pattern of all cross-border employees.
☐ Analyze if travel patterns align with company policies.
☐ Check if there is a change in residence.
☐ Take necessary actions based on travel pattern analysis.
2. A1 Certificate
☐ Verify the validity of all A1 certificates.
☐ Request extensions for expiring certificates.
☐ Ensure certificates match employees’ current travel patterns.
☐ Confirm every employee working in other Member States or on assignment has an A1 certificate.
3. Limosa Notification
☐ Check that Limosa notifications are up to date for employees working in Belgium under foreign social security.
☐ Renew Limosa notifications if they are nearing expiration (valid for max. two years).
4. Frontier Workers – Teleworking
☐ Request A1 certificates for teleworking employees in due time.
☐ Regularly check working patterns for teleworkers.
☐ Ensure required labor law documents are in place.
☐ Annually update records of any additional professional activities (e.g., flexi-job, self-employment).
Need Help?
For assistance with tracking or analyzing social security obligations, contact your EY representative or Hendrik Serruys.