Municipal care pay and foster home allowance
Concerns municipal care pay and foster home allowance.
Brief information concerning municipal care pay and foster home allowance
Specify municipal care pay and the taxable part of foster home allowance.
Exceptions:
If the income recipient performs the work as an employee of the municipality, you must specify the benefit as fixed salary or hourly wage.
Care benefit
Concerns benefits paid to private individuals, e.g. spouses or other relatives, who perform particularly onerous care duties on a private basis.
The term was altered from ‘care pay’ to ‘care benefit’ on 1 October 2017. This was done to give the service a more appropriate description. The change resulted in no legal change in the service. It is the municipality that sets the number of hours and determines the care pay.
Foster care allowance
Concerns payments made to foster parents and consists of two parts:
- work remuneration which is taxable
- tax-free reimbursement of expenses which is intended to cover board, clothing and leisure activities.
You must specify the taxable part of the foster home allowance as “municipal care pay and foster home allowance” You must specify the tax-free part as expense allowance, other.
The information you must provide
| Amount | x NOK |
| Type of salary or benefit | Cash benefit, municipal care pay and foster home allowance |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
| Additional information: | - |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “cash benefit” and “municipal care pay and foster home allowance”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
You do not deduct withholding tax if the amount to be deducted is less than the minimum thresholds for withholding tax.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
Additional information
No additional information.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When to report
Report the benefit in the calendar month in which you paid the amount.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
Both municipal care pay and foster home allowance are considered to be equivalent to income for contractors, but these incomes will normally still be received in the event of illness, for example, and should not generally be included in the calculation of benefits from NAV. However, if the allowances cease as a result of illness or leave, they should be included in the calculation basis.
The Norwegian Tax Administration uses information concerning salary and other benefits to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
