Bradford Jacobs 20 years’ experience as a leading international payroll organisation puts us in prime position to deal with the complex payroll and tax regulations facing companies expanding into the Netherlands. Bradford Jacobs are the Professional Employer Organisation (PEO) payroll experts for the Netherlands.
Using PEO payroll services is strongly recommended when entering the Dutch market, and Bradford Jacobs ensure companies always comply with the latest regulations while onboarding their new employees. Our dedicated specialists remove the burden of Dutch payroll, tax and employment laws while you focus on building your business in a new territory.
As the Employer of Record (EOR) for employees, individuals are employed through Bradford Jacobs with their income paid in the form of salary, expenses, allowances or bonuses depending on their circumstances.
What taxation rules exist for Netherlands payroll?
Dutch payroll comprises various layers and, as with most international payroll regulations, the employer withholds deductions on behalf of the employee to be paid to the relevant tax authorities. These include payroll tax, which is between 9.7 and 49.5% and National Social Insurance contributions at 27.65%.
Foreign companies hiring workers in the Netherlands must comply with local regulations. Payroll tax returns are submitted per pay period for each type, including wage tax, national insurance and social security contributions. These have to be submitted electronically to the tax authorities along with other individual data elements.
Sounds complicated? Avoid the red tape and bureaucracy by employing Bradford Jacobs’ global payroll services for your Netherlands payroll taxes. Our Netherlands PEO payroll experts ensure your company is always up-to-the-minute with changes to rules, rates or taxes. Relieved of this burden, you are free to devote the time instead to your company’s expansion.
What Netherlands payroll options are available for companies?
Put simply, foreign businesses expanding into the Dutch market have two options. Run the payroll internally … or instead choose a PEO and EOR who will implement their Dutch outsourcing experience to handle the payroll.
The first option will involve countless office days dealing with Dutch labour law, which is outlined in statutory regulations in the Dutch Civil Code (Burgerlijk Wetboek) and extensive case law. Before even considering operating payroll, employers must locate the staff to put in-country, negotiate contract terms covering salary, compensation, benefits and termination – which can be problematic under Dutch law.
Then comes registering with the Netherlands Chamber of Commerce (KVK) in the Commercial Register (Handelsregister), calculating pay and deductions for tax and National Social Insurance, corporation tax, capital tax … the list goes on.
Too complicated? Not if you go for the second option by working with Netherlands’ payroll services specialists Bradford Jacobs. We source the candidates for you to select your new staff members and begin implementing payroll so every detail relating to salaries, tax and Dutch employment laws is dealt with by the time they are in their office.
Less hassle – more productivity.
What is required to set up Netherlands payroll?
Companies planning to run their own payroll in the Netherlands must follow set procedures. These include:
- All business and legal entities must register in the Commercial Register at the Netherlands Chamber of Commerce (KVK)
- The company can be registered by a director, or branch manager with power of attorney
- Directors applying from abroad must complete three different sets of documents supplied by the KVK
Only foreign legal entities can register in the Commercial Register. Companies wanting to open a Dutch branch under foreign sole ownership must set up a new business and supply certified authentic documents covering:
- Proof of company registration from the country where it was founded
- Memorandum of Association
- Articles of Association
- Details of board of directors
This is a daunting prospect. Payroll outsourcing for the Netherlands is your solution to avoiding this mass of red tape. Bradford Jacobs’ proven success as global payroll service providers will ensure you comply with all the above regulations. Expanding your worldwide presence is your priority – managing all your compliance issues is ours. Contact Bradford Jacobs today
What entitlement / termination terms are needed to set up Netherlands payroll?
The Dutch Civil Code is the most important source of employment law, which is particularly complicated concerning dismissal and termination. These elements were radically amended by the 2015 Work and Security Act, which made dismissal or termination more complex for employers. Further legislation in 2016 and 2017 strengthened the legal position of employees, particularly those assigned to third parties.
The statutory notice period for an employee is one month. A longer or shorter notice period can be agreed if stated in the employment contract. If the employee’s notice period is one month, the notice period the employer gives to the employee must be at least twice as long. The maximum notice period is six months. Employers who fail to give the correct notice period face paying compensation equivalent to what the employee would have earned in the previously agreed notice period.
It is essential that the terms covering dismissal and entitlement are comprehensively covered in the contract. With the support of a PEO and EOR operation such as Bradford Jacobs, this need not be a disincentive to operating in the Netherlands. Our experts in Dutch employment law remove the stress from termination issues by staying up-to-the-minute with the frequent changes to legislation.
Contact Bradford Jacobs’ global PEO payroll services for the Netherlands
Bradford Jacobs will assume total responsibility for your payroll administration and liaise with the Dutch Tax Office and Social Security organisations. Our specialised knowledge of Dutch employment has enabled us to successfully manage the payrolls of numerous contractors and employees in the Netherlands.
Dutch payroll services include:
- Registration with the Dutch Tax Office and the UWV (Social Security organisation)
- Creating employment contracts
- Negotiating the 30% tax exemption for skilled expats (where applicable)
- Calculating salary and creating payslips
- Advice on available tax free allowances
- Submitting wage tax returns and National Social Insurance forms
- Correspondence with involved parties
- Annual accounts and year-end statements
- Creating payment schedules for wage tax, National Social Insurance and net wages
This lengthy list can be removed from your own workload by contacting Bradford Jacobs now. Let’s talk – contact us here