The Netherlands Business Registration Checklist for Remote Payroll

Before initiating payroll services with Remote in the Netherlands, please review this checklist to ensure your business has completed all necessary registration steps. This will help streamline the process and avoid any potential delays.

Mandatory Items

1. Has the company registered with the Dutch Tax and Customs Administration (Belastingdienst)?
   Employers must register with the Belastingdienst to receive a tax number (RSIN, Legal Entities and Partnerships Identification Number). This identification number enables you to pay income tax, value-added tax (VAT), and payroll tax.
2. Has the company registered with the Dutch Chamber of Commerce (KvK)?
   The KVK (Dutch Chamber of Commerce) is a public service provider that helps business owners succeed. It manages the Dutch Business Register (Handelsregister) and maintains records of all companies registered in the Netherlands. Upon registration, your business receives a unique KvK number, which is essential for conducting official business and opening a bank account.

Requirements for Multiple Entities

1. Does each entity have its own Payroll Tax Number (loonheffingennummer)?
   A Payroll Tax Number (loonheffingennummer) is a unique identification number issued by the Belastingdienst (Dutch Tax and Customs Administration) to employers in the Netherlands. It is required for handling payroll taxes—including wage tax, national insurance contributions, and income-related healthcare contributions—for employees. You'll receive this number after completing your registration with the Belastingdienst. If your company has multiple entities, each one must have its own payroll tax number.
   Visit the official website to read more about payroll taxes.

Requirements for Some Businesses

These requirements may apply based on your business size (such as having fewer than 10 employees) or employee categories (like freelancers and self-employed workers).

1. Has the company registered the Employee Insurance Agency (UWV)?
   The UWV (Uitvoeringsinstituut Werknemersverzekeringen) is an autonomous administrative authority commissioned by the Ministry of Social Affairs and Employment. It manages employee benefits including unemployment insurance, sick pay, and other social security programs. All employers in the Netherlands must register with the UWV to provide their employees access to these benefits, though some exemptions exist for small businesses. This registration ensures compliance with Dutch labor laws and social security regulations.
   Visit the official website to read more information.
2. Has the company registered for WHK Premium?
   The Work Resumption Fund (Werkhervattingskas) is an employee insurance program managed by the Dutch Tax and Customs Administration. The WHK premium, also known as WHK-premie, is overseen by the Employee Insurance Agency (UWV) as part of the Netherlands' social security system. It funds benefits and support programs for sick or disabled employees, including long-term illness coverage and workforce reintegration services.
   The premium is calculated annually based on three factors: 1. Your company size (small, medium, or large employer classification), 2. You industry, and 3. The number of claims made by (former) employees under the WGA or ZW-flex schemes on sickness, disability, and unemployment claims. The more claims associated with your business, the higher your WHK-premie.

Recommended Best Practices

1. Are all internal company agreements/policies in place based on local laws?
   To ensure smooth payroll processing and set up your company for success, we need your company policies. This includes leave policies and standardized procedures for payroll processing to ensure consistent and accurate calculations, deductions, and benefits.

Optional Items

1. Has the company established a pension scheme? Pension schemes in the Netherlands are not mandatory. Each organization can independently decide whether to offer a pension scheme to their employees.
2. Is the entity subject to a Collective Labour Agreement (CAO)?
   A Collective Labour Agreement (CAO)in the Netherlands (Collectieve Arbeidsovereenkomst) is an agreement between employers (or employer organizations) and trade unions. It establishes terms for wages, working hours, notice periods, pensions, and other employment conditions that apply to a specific sector, company, or group of employees.
3. Does the company maintain internal financial journals?
   Proper financial record-keeping and adherence to accounting standards are essential for accurate documentation and reporting.
4. Do you require weekly WKR (Work-Related Costs Scheme) reporting?
   Regular monitoring of the Work-Related Costs Scheme (Werkkostenregeling, WKR) ensures accurate tax reporting and compliance. This scheme allows employers to provide employee benefits without incurring additional tax liabilities, provided these benefits stay within specified limits. It offers a streamlined approach to managing employee benefits and reimbursements.
5. Is the company self-insured for ZW (Sickness Benefits)?
   This determines whether your company handles employee sick benefits directly under the Sickness Benefits Act (Ziektewet, ZW) rather than through the standard insurance system.
   Visit the official website to read more about sick pay and benefits.