Dutch Payroll Services

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Dutch Payroll

At Bradford Jacobs, our Employer of Records (EOR) platforms provide reliable solutions for companies wishing to establish their presence in the Dutch economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Netherlands Payroll solutions that can be personalized to your requirements.

We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Dutch payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to.

What Dutch Payroll Options are available for Companies?

  1. Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in the Netherlands to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  2. Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in the Netherlands. However, this does require hiring dedicated HR staff who understand Dutch employment and compliance laws.
  3. Netherlands’ payroll processing company – If you are considering outsourcing, then working with a Dutch payroll company will help in processing your payroll – but not when it comes to compliance.
  4. Netherlands’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in the Netherlands. We take the administrative stress off your shoulders so you can focus on what you do best.

Dutch Payroll Services

Establishing payroll in the Netherlands demands a total understanding of the employment laws and many levels of taxation regulations. The authorities strictly apply fines and sanctions for non-compliance with the legal aspects of payroll, taxation, and employment.

It is best to ‘play safe’ and outsourcing payroll services in the Netherlands will deal with the following:

  • Registering with the tax authorities through the Dutch Tax and Customs Administration (Belastingdienst).
  • Registering with the Social Security Bank (SVB) which coordinates the social insurance systems – national insurance for individuals legally living in the Netherlands and employee insurance for those working in the country.
  • Registering with the Employee Insurance Agency (UWV), which operates under the Ministry of Social Affairs and Employment (SZW) and handles benefits covering such as unemployment and sickness.
  • Obtaining the citizen service number (BSN) for all employees so they can interact and liaise with national, regional, and municipal authorities.
  • Negotiating the 30% tax exemption for skilled expats (where applicable)
  • Reconciling national and any local taxes to assess for refunds or extra payments
  • Applying for employees’ special expatriation status (if applicable)
  • Calculating employees’ monthly salary and sending their pay slips
  • Researching for any available tax incentives
  • Submitting employees’ and employers’ wage tax returns and social insurance forms
  • Creating and submitting your company’s annual accounts and year-end statements
  • Creating payment schedules for salaries and national insurance contributions
  • Ensuring accurate personal income tax returns are filed for you and your employees, where required

What is required to set up Dutch Payroll?

A foreign company planning to operate payroll in The Netherlands by establishing its own subsidiary must follow various procedures, and these vary according to company type. Exclusively foreign-owned companies can enroll in the Commercial Register. Once established, the new company must follow strict registration procedures before they can operate payroll for their staff. These include:

  • Registering with the Dutch Customs and Excise Administration (Belastingdienst).
  • Registering with the Social Security Bank (SVB), which coordinates the social insurance systems – national insurance for individuals legally living in the Netherlands and employee insurance for those working in the country.
  • Registering with the Employee Insurance Agency (UWV), which operates under the Ministry of Social Affairs and Employment (SZW) and handles benefits covering such as unemployment and sickness.
  • Obtaining the citizen service number (BSN) for all employees for liaising with national, regional, and municipal authorities.