Required Statutory Information During Payroll Implementation in the Netherlands

Here is the statutory-related information we will be asking you during the “2. Customer Information Collection” stage.

1) Holiday Allowance

• Is holiday allowance included in salary or on top of the salary?
• How is the holiday allowance paid?
  • Holiday allowance is a gross payment equivalent to 8% of the total gross salary. It is usually accrued during the employment period from June to May. Employers are required to pay this 8% holiday allowance to their employees. You can choose whether to include it in the gross annual salary or pay it on top of it, and you can also decide whether the holiday allowance should be paid monthly or annually (in May or June).
  • Visit the official website here to read more details on holiday allowance.
• If annual, please provide a list of the amounts the employees saved until December of the previous year (If a year-to-date implementation is being done between January- June)
• If paid annually, what month?

2) WHK

• Which 'WHK-premiepercentages' are applicable?
  • The premium percentages used by the Tax Authorities are determined based on the wage bill liable for contributions from two years previously. Every November, the Tax Authorities send the Whk decision to employers for the following year.

3)  Pension

• Is the company providing a pension scheme to employees?
• Is the base wage for the contribution calculated monthly or annually in January?
• What is the franchise amount?
• What is the maximum yearly contribution?
• How is sickness currently handled/calculated in the payroll?

4) Cost Scheme

• Is your company making use of the Work-related costs scheme (werkkostenregeling, WKR)?
  • WKR is a system introduced by the Dutch government to simplify the tax treatment of employee benefits and expenses provided by employers. Under this scheme, employers can allocate a portion of their total payroll budget to provide tax-free allowances, benefits, or expenses to their employees.
  • Visit the official website here to read more details on WKR.
• During the tax declaration in January or February, if employers go over this percentage/amount, they need to pay extra taxes on this. Please confirm if you needed to pay extra taxes on this in the previous year.

5) Overtime Policy

• Information on your overtime policy

6) End-of-the-year process

• Payroll closure date in December for annual income statement, cumulative overview and pension

7) 30% Ruling Applied

• Start date and end date
  • Visit the official website to read more details on the 30% facility