Settlement in arrears of disability benefit from the National Insurance Scheme
For use by the Norwegian Labour and Welfare Administration (NAV) only. Concerns settlement in arrears of disability benefit.
Brief information about settlement in arrears of disability benefit from the National Insurance Scheme
Specify settlement in arrears of disability benefit from the National Insurance Scheme in accordance with the National Insurance Act, Section 12-14 fourth paragraph. Concerns positive settlement in arrears of benefits which you have previously specified as Disability benefit from the National Insurance Scheme.
You must specify negative settlement in arrears as Disability benefit from the National Insurance Scheme.
The description is only used for benefits from the Norwegian Labour and Welfare Administration (NAV).
About the settlement in arrears
With effect from 1 January 2015, anyone who receives or is granted disability benefits from the National Insurance Scheme will be allocated an income threshold. Income recipients must inform the National Insurance Scheme of their expected income and any changes in income.
If the income recipient has received too little or too much disability benefit as a result of inaccurate income information being used as a basis, NAV must carry out a settlement in arrears.
The settlement in arrears takes place once the tax assessment for the year concerned is available. If an income recipient does not receive disability benefit throughout the whole year, the pensionable income during the period with disability benefit should be used.
New descriptions
From 1 January 2015, the following new names were introduced:
Disability pension from the National Insurance Scheme: disability benefit Disability pension from parties other than the National Insurance Scheme: disability benefits
The name ‘disability pension’ is also still in use.
With effect from 1 January 2015, disability benefit from the National Insurance Scheme and disability benefits from other schemes will be taxed as salary.
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Cash benefit, disability benefit settlement in arrears |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Period | Start date and end date |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “cash benefit” and “disability benefit settlement in arrears”.
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 do not calculate employer’s national insurance contributions on the benefit.
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 not resident in Norway for tax purposes, and
- pay withholding tax on pensions
You must specify “withholding tax on pensions” for the associated withholding tax.
Don't use the tax- and contribution rule or specify a description on withholding tax on pensions on foreign workers that fall under the PAYE scheme (Pay As You Earn).
See detailed information on withholding tax in the a-melding
See also the detailed information concerning withholding tax on pensions
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.
Additional information
- Period
Specify the start date and end date that the benefit concerns.
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
Positive settlement in arrears
If too little disability benefit has been paid in previous years, specify the settlement in arrears in the month in which the payment is made, with a statement of the period that the settlement concerns. The amount will then be positive.
Example of positive settlement in arrears
NAV carries out a settlement in arrears in 2016 for William. He has received too little disability benefit and NAV makes an additional payment in November 2016. William received NOK 11,000 too little in 2015.
| A-melding for November 2016 | ||
| Amount | 11,000 | |
| Type of salary or benefit | Cash benefit, disability benefit settlement in arrears | |
Additional information: |
||
| Period | 1 January 2015 to 31 December 2015 | |
| Withholding tax | - | 3,000 |
It also enters the other obligatory information.
Negative settlement in arrears
If too much disability benefit has been paid in previous years, you must correct this in the previously specified disability benefit, and not specify it under the income description “Settlement in arrears of disability benefit from the National Insurance Scheme (NAV)". If the incorrect payment concerns several calendar months, you must make corrections for all the calendar months the payment concerns.
Before 2020, the common practice was that the a-melding had to be corrected only once the overpayment had been repaid. As of 2020, this practice has now changed. The change does not have retrospective effect, meaning it does not apply to older cases. This means that the time of reporting is voluntarily for back payment claims established before January 2020.
Note!
You must not specify negative settlements in arrears of disability benefit in the income description for settlement in arrears. There is a difference between the reporting of settlements in arrears for disability benefit from organisations other than the Norwegian National Insurance Scheme and that for disability benefit from the Norwegian National Insurance Scheme.
Example of negative settlement in arrears
NAV carries out a settlement in arrears in 2020 for Emma. She has received too much disability benefit and receives a repayment claim for the overpaid net amount.
Gross, Emma has received NOK 6,000 too much in 2019. The net amount paid is NOK 4,200. As Emma shall repay the net amount, the withholding tax deduction must also be corrected, so that Emma is not credited for this. The a-melding must be corrected once the the decision concerning repayment has been made, or once the actual repayment has been made, whichever occurs first.
NAV corrects the total disability benefit by NOK 6,000 and total withholding tax deductions by NOK 1,800 in total for the year.
These amounts are split between all the months of the year, so that NAV corrects the disability benefit by NOK 500 and withholding tax deductions by NOK 150 for each individual month:
|
A-melding for each individual month in 2019 (January to December) |
||
| Amount | - | 500 |
| Type of salary or benefit | Cash benefit, disability benefit | |
| Withholding tax | 150 | |
It also enters the other obligatory information.
When you must submit reports
In the case of positive settlements in arrears, specify the benefit in the calendar month in which you paid the amount.
If the settlement in arrears is negative, state the settlement in arrears by correcting the previously reported disability benefit once the decision concernig repament has been made, or once the actual repayment has been made, whichever occurs first. If payment was reported incorrectly for several calendar months, you must correct all the relevant months.
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-248 Illogical periode |
| MAGNET_EDAG-260 Start and end date for the back payment periode must be within the same year |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
The Norwegian Tax Administration uses information concerning disability benefit 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.
