Settlement in arrears of disability benefits (disability pension) from parties other than the National Insurance Scheme
Concerns settlement in arrears of disability benefits from parties other than the National Insurance Scheme and from a former IPA or IPS.
Brief information concerning settlement in arrears of disability benefits (disability pension) from parties other than the National Insurance Scheme
Specify settlement in arrears of benefits that have been specified as disability pension (disability benefits) from parties other than the National Insurance Scheme and disability pension (disability benefits) from an IPA or IPS.
About the settlement in arrears
With effect from 1 January 2015, anyone who receives or is granted disability benefits (disability pension) will be allocated an income limit. The income recipient must inform the pension fund of the expected income and any changes in income.
If the income recipient has received too little or too much disability benefit (disability pension) as a result of inaccurate information concerning income being used as a basis, a settlement in arrears must be carried out.
The settlement in arrears will take place once the tax assessment for the year concerned is available. If the recipient does not receive disability benefit throughout the whole year, the pensionable income during the period with disability benefits is used.
The income description must be used for the settlement in arrears of benefits that have been reported as disability pension (disability benefits) from parties other than the National Insurance Scheme and disability pension (disability benefits) from an IPA or IPS.
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, settlement in arrears of disability benefit from parties other than the National Insurance Scheme |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/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 “settlement in arrears of disability benefit from parties other than the National Insurance Scheme”.
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.
Exemption:
The benefit may be included in the employer's National Insurance contribution basis if it is paid by a former employer. If the pension began to accrue before 1 January 1988, it should however not be included in the basis for calculating employer's national insurance contributions.
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 (disability pension) has been paid in previous years, specify the settlement 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
A pension company carries out a settlement in arrears in 2016 for William. He has received too little disability benefit and the pension company 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, settlement in arrears of disability benefit from parties other than the National Insurance Scheme | |
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 (disability pension) has been paid in previous years, specify the settlement in arrears in the a-melding for the December of the income year that the settlement concerns, with a statement of the period that the settlement concerns.
The amount is negative.
Before 2020, the common practice was that the a-melding had to be corrected only once the incorrect payment 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.
Example of negative settlement in arrears
A pension company carries out a settlement in arrears in 2020 for Emma. She has received an overpayment of disability benefits (disability pension) and receives a repayment claim for the overpaid net amount. 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.
Gross, Emma received NOK 6,000 too much in 2019. The net amount paid is NOK 4,200.
The pension company specifies the settlement in arrears for total disability benefits (disability pension) in the amount of NOK 6,000.
|
A-melding for December 2019 |
||
| Amount | - | 6,000 |
| Type of salary or benefit | Cash benefit, settlement in arrears of disability benefit from parties other than the National Insurance Scheme | |
| Withholding tax | 1,800 | |
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 benefit for December of the income year the settlement applies to once the the decision concerning repayment has been made, or once the actual repayment has been made, whichever occurs first.
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 pension and national insurance contributions 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.
