If there is room under the WKR (work-related costs scheme) and if the conditions for using the WKR are met, then you can designate it as ‘eindheffingsloon’. As a result, you will be able to reimburse your employees tax-free and the babysitting credit will potentially not be considered wages. If there is no room under the WKR, then the babysitting credit could be considered (extra) wages and the usual wage costs will have to be paid. We advise that you check with your financial department, or with an external administrator or tax specialist.